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Agan Interior Design provides home and office decorating assistance to its customers. In normal operation, an average of 2.5customers arrive each hour. One design consultant
- Agan Interior Design provides home and office decorating assistance to its customers. In normal operation, an average of 2.5customers arrive each hour. One design consultant is available to answer customer questions and make product recommendations. The consultant averages10 minutes with each customer. a. Compute the operating characteristics of the customer waiting line, assuming Poisson arrivals and exponential service times. Service goals dictate that an arriving customer should not wait for service more than an average of 5 minutes. b. Is this goal being met? If not, what action do you recommend? c. If the consultant can reduce the average time spent per customer to 8minutes, what is the mean service rate? Will the service goal be met? Agan’s management would like to evaluate two alternatives: Use one consultant with an average service time of 8 minutes per customer. Expand to two consultants, each of whom has an average service time of 10 minutes per customer. d. If the consultants are paid $16 per hour and the customer waiting time is valued at $25 per hour for waiting time prior to service, should Agan expand to the two-consultant system? Explain.
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