Management of the first Syracuse bank is concerned about a less of customers at

Question

Management of the first Syracuse bank is concerned about a less of customers at its main office downtown. One solution that has been proposed is to add one or more drive through teller stations to make it easier for customers in cars to obtain quick service without parking. Chris Carlson, the bank president, thinks the bank should only risk the cost of installing one drive through, he is informed by his staff that the cost (amortzed over 20 year period) of bluing a drive through is $12.000 per year. It also costs $16,000 per year in wages and benefits to staff each new teller window. The director of management analysis Beth Shader, believes that the following two factors encourage the immediate construction of two drive through stations, however. According to a recent article in banking research magazine, customers who wait in long lines for drive-through teller service will cost banks an average of $1 per minute in loss of goodwill. Also, adding a second drive through will cost an additional $16,000 m staffing but amortized construction costs can be out to a total of $20.00 installed together instead of one at a time, to complete her analysis, Shader collected one month's arrival and service rates at a competing downtown banks drive through stations. This data are shown as observation analyses 1 and 2 in the following tables.

Explanation / Answer

a. Stimulate a one hour time period from 1 pm to 2pm for a single teller drive through

Total waiting time for 13 minutes

Total no of cutomers wait =5

Step 1:Generation of random numbers Time between arrivals Probability Cumulative Probability Random Numbers 1 0.20 0.20 0 to 19 2 0.25 0.45 20 to 44 3 0.30 0.75 45 to 74 4 0.15 0.90 75 to 89 5 0.10 1.00 90 to 99 Service time in minutes Probability Cumulative Probability Random Numbers 1 0.10 0.10 0 to 9 2 0.15 0.25 10 to 24 3 0.35 0.60 25 to 59 4 0.15 0.75 60 to 74 5 0.15 0.90 75 to 89 6 0.10 1.00 90 to 99

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