Question
With the information given in Problem 1, the managers of the Administrative Services Office know that students hate waiting in line before getting served. The
With the information given in Problem 1, the managers of the Administrative Services Office know that students hate waiting in line before getting served. The cost of good will is $10/hour for every hour that each student waits in lines. To reduce the time a student spends waiting, they know that they need to improve Judy's processing time (see the last problem). They are currently considering the following two options: a. Install a computer system, with which Judy expects to be able to complete a student request 40 percent faster (from 2 minutes per request to 1 minute and 12 seconds, for example). b. Hire another temporary clerk working in parallel serving a single queue, who will work at the same rate as Judy. If the computer costs $50 to operate per day, while the temporary clerk gets paid $70 per day, is Judy right to prefer the hired help? Assume exponential interarrival times and exponential service times.
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