Question

1. Agan Interior Design provides home and office decorating assistance to its customers. In normal operation, an average of 2.1 customers arrive each hour. One design consultant is available to answer customer questions and make product recommendations. Agan's management would like to evaluate two alternatives: • Use one consultant with an average service time of 8 minutes per customer. • Expand to two consultants, each of whom has an average service time of 10 minutes per customer. • If the consultants are paid S16 per hour and the customer waiting time is valued at $23 per hour for waiting time prior to service, should Agan expand to the two-consultant system? What is the total cost for each scenario? Round your answers to the nearest cent. The total cost for the first scenario where there is one consultant with an average service time of 8 minutes per customer is $ The total cost for the second scenario where there are two consultants with an average service time of 10 minutes per customer is S Note: Use Po values from Table 11.4 to answer the questions below. TATAVATES OF PROR MULTIFARVERMITTELS WITH NON L EBERRELSE

Answer 1

Agan Interior Design provides home and office decorating assistance to its customers. In normal operation, an average of 2.1 customers arrive each hour. One design consultant is available to answer customer questions and make product recommendations.Agan’s management would like to evaluate two alternatives:

Use one consultant with an average service time of 8 minutes per customer.

Expand to two consultants, each of whom has an average service time of 10 minutes per customer.

Solution :

02.08 22.1 Customers 1 hour a consultant averager 8 minutes with each custome BO - 7.5 2 consultant average service time 10 minute per customers. alla Golob * Ardeage no. of customer waiting: - 4q- eicelan) -71511-5-2015 hqa tiets 01089 Average no of customers in the system La L9+ = 0.1089+ 2 1 1 L0.3889 * Average waiting time in the minutes. klą - L9 IX = 0.1089/21 kq = 0.8519 x Aug. time in system in minutes. WA WAL. 0.051941 kl = 0.1403 for and consultant Po 20.702 igor till 20.357 : 19= 0.01 AS Lq = pola py Ľ e ? (1-) 75

* Ave. no. of eustomers waiting: Lq=0.011 of Ang no of customers waiting in the system. LaLquly L= 0.011+0.35 ha 0.361 * Ang waiting time in minutes in - Hq Lala 20.01112.1 Wq=0.0052 e Avg time in system in minutes : - wa Wqt = 0.0052+1 W= 0.1675 The consultant paid $16 Tho. and customer waiting time is valued at $23 lho... 2. ford consultant I for and consultant Service cost $16x1 $ 16x2 16 : le $ 32, waiting cost = L*$23 1. LX $23 -0.3889*$23 0.361* $ 23 - $8.95 . $ 8.303 Total $24.95 Total = 40.303 Se a

The total cost for the first scenario where thre is one consultant with an average service time of 8 minutes per customer is $ 25.

The total cost for the second scenario where thre are two consultants with an average service time of 10 minutes per customer is $ 40.