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Peter owns a video rental store and is the only person working in the store. Assume that customers arrive with inter arrival time of 40
Peter owns a video rental store and is the only person working in the store. Assume that customers arrive with inter arrival time of 40 minutes on average with coefficient of 1. On average, it takes Peter 30 minutes to treat a customer and the service (activity) time has a coefficient of 1. When his customers are waiting, Peter has to feed them with free coffee which costs one dollar per hour per person. a). Peter is thinking to hire one additonal employee to help him. For such a decision to make economic sense, what is the maximum salary he could afford to pay? b) After listening to a presentation by Medicover CEO, Peter is thinking to hire a call center operator that would eliminate arrial variability. What is the maximum salary he would be willing to pay? Which option is better
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