PART 2. QUEUES. (15 Marks)

Direction: Read, Analyze and Calculate what required.

ABC Furniture store gets an average of 170 customers per shift. The manager of ABC wants to calculate whether she should hire 1, 2, 3, or 4 salespeople. She has determined that average waiting times will be 5 hours with 1 salesperson, 4 hours with 2 salespeople, 3 hours with 3 salespeople, and 2 hours with 4 salespeople. She has estimated the cost per hour that customers wait at $ 15. The cost per salesperson per shift (including benefits) is $95.

	Number of Sales people
	1	2	3	4
(a)Average number of customers per shift
(b) Average waiting time per customer (hours)
(c) Total waiting time per shift (hours)
(d) Cost per hour of waiting time (estimated)
(e) Value of lost time per shift
(f) Salary cost per shift
(g) Total cost per shift

1- Calculate the total waiting time per shift, value of lost time per shift, Salary cost per shift and total cost per shift ( 14 X 1mark = 14 Marks)

2- Use the queues model to determine the number of salespeople should be hired (1 Mark)