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An airline checks in 90 customers per hour at its check-in counter. Currently, there are 5 check-in clerks and customers wait in a single queue
An airline checks in 90 customers per hour at its check-in counter. Currently, there are 5 check-in clerks and customers wait in a single queue for the first available clerk. Service time per customer is exponentially distributed with mean 3 minutes. Clerks are paid $10 per hour and the airline has estimated the cost of waiting time per customer at $20, for each hour that a customer waits in the line. i. What is the cost of waiting per hour for the current system? (5 marks) Page 5 of 5 ii. The airline is considering replacing one clerk with a self check-in kiosk. The airline estimates that 20% of customers will use self check-in. A self check-in kiosk takes one minute on average to serve a customer. If the kiosk is operated for 8 hours per day and it costs $48 per day to operate, should the airline install it? Assume that those customer who are willing to use the self check-in kiosk wait in a single queue. (11 marks)
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