Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question B2 (30 pts): Customers arrive to Lincoln Savings Bank (LSB) with an average rate of 3 customers per minute. The average time a teller

Question B2 (30 pts): Customers arrive to Lincoln Savings Bank (LSB) with an average rate of 3 customers per minute. The average time a teller takes to serve a customer is 5 minutes. Standard deviation of customer inter-arrival time is 1.5 minutes and standard deviation of service time is 3 minutes. LSB employs 20 tellers. All customers form a single waiting line and can be served by any of the tellers in a first-come-first-serve basis as tellers become available. For simplicity, assume that there are no group arrivals, there is enough waiting space for all customers, and none of the customers abandon the line.

B2(a) - (5pts): What percent of the time a teller is busy with serving to a customer?

B2(b) - (10pts): On average, how many customers wait in the line?

B2(c) - (5pts): On average, how much time a customer spends waiting in the line?

B2(d) - (10pts): LSB estimates that for every hour a customer spends waiting in the line, LSB loses $60 due to customer dissatisfaction and losing future business. A teller is paid $20 per hour. Calculate the total hourly waiting and capacity cost generated by LSB.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Peter Clarke

2nd Edition

9781907214240

More Books

Students also viewed these Accounting questions

Question

does linux track the files size and its location on

Answered: 1 week ago

Question

Describe some variables used to measure the value added of HRM

Answered: 1 week ago

Question

Critically evaluate research on the HRMperformance relationship

Answered: 1 week ago