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You are assigned the task of deciding how many tellers to employ for the 11:30-12:00 slot on a normal day. Assume that the cost of
You are assigned the task of deciding how many tellers to employ for the 11:30-12:00 slot on a normal day. Assume that the cost of using a teller for an hour is $40. It is clear that customers are not happy to wait - in order to quantify economically the pain of waiting, you have been asked to value a customer's time at the rate of $300 per hour - that is, if a customer waits for 6 minutes (0.1 hours) in the queue (not including the service time), this waiting time is equivalent to the customer incurring a cost of $30.
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