There are approximately 300 customers shopping in Fackert Department Store in Me
ID: 3333550 • Letter: T
Question
There are approximately 300 customers shopping in Fackert Department Store in Mexico City between 9 a.m. and 5 p.m. on Saturdays. When deciding how many cash registers to keep open each Saturday, owner Susanna Fackert considers 2 factors: customer waiting time (and the associated waiting cost) and the service costs of employing additional checkout clerks. Checkout clerks are paid an average of $4 per hour. When only 1 is on duty, the waiting time per customer is about 10 minutes (or 1/6 of an hour). When 2 clerks are on duty, average checkout time is 6 minutes per person. When 3 clerks are working, 4 minutes; and 3 minutes with 4 clerks. Ms. Fackert has conducted customer satisfaction surveys and has been able to estimate that the store suffers approximately $5 in lost sales and goodwill for every hour of customer time spent waiting in checkout lines. The total expected cost with 1 clerk is $nothing (enter your response as a whole number). The total expected cost with 2 clerks is $nothing (enter your response as a whole number). The total expected cost with 3 clerks is $nothing (enter your response as a whole number). The total expected cost with 4 clerks is $nothing (enter your response as a whole number). The optimal number of clerks to have on duty each Saturday in order to minimize the store's total expected cost is nothing clerks (enter your response as a whole number). There are approximately 300 customers shopping in Fackert Department Store in Mexico City between 9 a.m. and 5 p.m. on Saturdays. When deciding how many cash registers to keep open each Saturday, owner Susanna Fackert considers 2 factors: customer waiting time (and the associated waiting cost) and the service costs of employing additional checkout clerks. Checkout clerks are paid an average of $4 per hour. When only 1 is on duty, the waiting time per customer is about 10 minutes (or 1/6 of an hour). When 2 clerks are on duty, average checkout time is 6 minutes per person. When 3 clerks are working, 4 minutes; and 3 minutes with 4 clerks. Ms. Fackert has conducted customer satisfaction surveys and has been able to estimate that the store suffers approximately $5 in lost sales and goodwill for every hour of customer time spent waiting in checkout lines. The total expected cost with 1 clerk is $nothing (enter your response as a whole number). The total expected cost with 2 clerks is $nothing (enter your response as a whole number). The total expected cost with 3 clerks is $nothing (enter your response as a whole number). The total expected cost with 4 clerks is $nothing (enter your response as a whole number). The optimal number of clerks to have on duty each Saturday in order to minimize the store's total expected cost is nothing clerks (enter your response as a whole number). There are approximately 300 customers shopping in Fackert Department Store in Mexico City between 9 a.m. and 5 p.m. on Saturdays. When deciding how many cash registers to keep open each Saturday, owner Susanna Fackert considers 2 factors: customer waiting time (and the associated waiting cost) and the service costs of employing additional checkout clerks. Checkout clerks are paid an average of $4 per hour. When only 1 is on duty, the waiting time per customer is about 10 minutes (or 1/6 of an hour). When 2 clerks are on duty, average checkout time is 6 minutes per person. When 3 clerks are working, 4 minutes; and 3 minutes with 4 clerks. Ms. Fackert has conducted customer satisfaction surveys and has been able to estimate that the store suffers approximately $5 in lost sales and goodwill for every hour of customer time spent waiting in checkout lines. The total expected cost with 1 clerk is $nothing (enter your response as a whole number). The total expected cost with 2 clerks is $nothing (enter your response as a whole number). The total expected cost with 3 clerks is $nothing (enter your response as a whole number). The total expected cost with 4 clerks is $nothing (enter your response as a whole number). The optimal number of clerks to have on duty each Saturday in order to minimize the store's total expected cost is nothing clerks (enter your response as a whole number). There are approximately 300 customers shopping in Fackert Department Store in Mexico City between 9 a.m. and 5 p.m. on Saturdays. When deciding how many cash registers to keep open each Saturday, owner Susanna Fackert considers 2 factors: customer waiting time (and the associated waiting cost) and the service costs of employing additional checkout clerks. Checkout clerks are paid an average of $4 per hour. When only 1 is on duty, the waiting time per customer is about 10 minutes (or 1/6 of an hour). When 2 clerks are on duty, average checkout time is 6 minutes per person. When 3 clerks are working, 4 minutes; and 3 minutes with 4 clerks. Ms. Fackert has conducted customer satisfaction surveys and has been able to estimate that the store suffers approximately $5 in lost sales and goodwill for every hour of customer time spent waiting in checkout lines. The total expected cost with 1 clerk is $nothing (enter your response as a whole number). The total expected cost with 2 clerks is $nothing (enter your response as a whole number). The total expected cost with 3 clerks is $nothing (enter your response as a whole number). The total expected cost with 4 clerks is $nothing (enter your response as a whole number). The optimal number of clerks to have on duty each Saturday in order to minimize the store's total expected cost is nothing clerks (enter your response as a whole number). There are approximately 300 customers shopping in Fackert Department Store in Mexico City between 9 a.m. and 5 p.m. on Saturdays. When deciding how many cash registers to keep open each Saturday, owner Susanna Fackert considers 2 factors: customer waiting time (and the associated waiting cost) and the service costs of employing additional checkout clerks. Checkout clerks are paid an average of $4 per hour. When only 1 is on duty, the waiting time per customer is about 10 minutes (or 1/6 of an hour). When 2 clerks are on duty, average checkout time is 6 minutes per person. When 3 clerks are working, 4 minutes; and 3 minutes with 4 clerks. Ms. Fackert has conducted customer satisfaction surveys and has been able to estimate that the store suffers approximately $5 in lost sales and goodwill for every hour of customer time spent waiting in checkout lines. The total expected cost with 1 clerk is $nothing (enter your response as a whole number). $nothing The total expected cost with 2 clerks is $nothing (enter your response as a whole number). $nothing The total expected cost with 3 clerks is $nothing (enter your response as a whole number). $nothing The total expected cost with 4 clerks is $nothing (enter your response as a whole number). $nothing The optimal number of clerks to have on duty each Saturday in order to minimize the store's total expected cost is nothing clerks (enter your response as a whole number). nothingExplanation / Answer
Total Customers:300
A) 1 clerk
Cost= 5 X(10 X 300)/60 + 8 X 4= 282
B) 2 clerk
Cost= 5 X(6 X 300)/60 +8 X 4 X 2=214
C) 3 clerk
Cost= 5 X (4 X 300)/60 +8 X 4 X 3=196
D) 4 clerks
Cost= 5 X (3 X 300)/60 +8 X 4 X 4= 203
E) We can see that adding one more clerk increases the costs. So optimal clerks is 3.
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