Page 5 of 6 Pages ITIS 1P97 FALL 2019 A. Simulate a 1-hour time period, from 1 PM to 2 PM, for a single-teller drive through. Replicate the model 200 times. (12 marks) B. Simulate a 1-hour time period, from 1 PM to 2 PM, for a single line of people waiting for next available teller in a two-teller system. Replicate the model 200 times. (12 marks) C. Conduct a cost analysis of the two options (based on the 200 replications). Assume that the bank is open 7 hours per day and 200 days per year. (6 marks) PROBLEM 4: (30 Marks) Management of Charlottesville Bank is concerned about a loss of customers at its main office down-town. One solution that has been proposed is to add one or more drive-through teller windows to make it easier for customers in cars to obtain quick service without parking. Neha Patel, the bank president, thinks the bank should only risk the cost of installing one drive-through window. She is informed by her staff that the cost (amortized over a 20-year period) of building a drive-through window is $36,000 per year. It also costs $48,000 per year in wages and benefits to staff each new drive-through window. The director of management analysis, Robyn Lyon, believes that two factors encourage the immediate construction of two drive-through windows, however. According to a recent article in Banking Research magazine, customers who wait in long lines for drive-through service will cost banks an average of $3 per minute in loss of goodwill. Also, adding a second drive-through window will cost an additional $48,000 in staffing. but amortized construction costs can be cut to a total of $60,000 per year if the two drive-through windows are installed together instead of one at a time. To complete her analysis, Lyon collected arrival and service rates at a competing down-town bank's drive-through windows for one month. These data are shown in the following table: Service Time (Minutes) Time Between Number of Arrivals (Minutes) Occurrences 200 250 300 Number of Occurrences 100 150 350 150 100 Page 5 of 6 Pages ITIS 1P97 FALL 2019 A. Simulate a 1-hour time period, from 1 PM to 2 PM, for a single-teller drive through. Replicate the model 200 times. (12 marks) B. Simulate a 1-hour time period, from 1 PM to 2 PM, for a single line of people waiting for next available teller in a two-teller system. Replicate the model 200 times. (12 marks) C. Conduct a cost analysis of the two options (based on the 200 replications). Assume that the bank is open 7 hours per day and 200 days per year. (6 marks) PROBLEM 4: (30 Marks) Management of Charlottesville Bank is concerned about a loss of customers at its main office down-town. One solution that has been proposed is to add one or more drive-through teller windows to make it easier for customers in cars to obtain quick service without parking. Neha Patel, the bank president, thinks the bank should only risk the cost of installing one drive-through window. She is informed by her staff that the cost (amortized over a 20-year period) of building a drive-through window is $36,000 per year. It also costs $48,000 per year in wages and benefits to staff each new drive-through window. The director of management analysis, Robyn Lyon, believes that two factors encourage the immediate construction of two drive-through windows, however. According to a recent article in Banking Research magazine, customers who wait in long lines for drive-through service will cost banks an average of $3 per minute in loss of goodwill. Also, adding a second drive-through window will cost an additional $48,000 in staffing. but amortized construction costs can be cut to a total of $60,000 per year if the two drive-through windows are installed together instead of one at a time. To complete her analysis, Lyon collected arrival and service rates at a competing down-town bank's drive-through windows for one month. These data are shown in the following table: Service Time (Minutes) Time Between Number of Arrivals (Minutes) Occurrences 200 250 300 Number of Occurrences 100 150 350 150 100
