If you were the manager, which option would you select? Why? Explain the disparity between the results for the two options. What assumptions did you make in your analysis?
The operations manager of a soon-to-open branch of a large bank is in the process of configuring teller operations. Currently some branches have a separate teller line for customers who have a single transaction, while other branches don’t have separate lines. The manager wants to avoid complaints about long waits that have been received at some branches. Because the demographics differ from location to location, a system that works at one branch won’t necessarily work at another. The manager has obtained data on processing times from the bank’s home office and is ready to explore different options for configuring operations. (Fortunately she has her textbook and CD from when she took an operations management course at a nearby university.) An average of 80 customers are processed during the noon hour. The average processing time for customers with a single transaction is 90 seconds, while the processing time for customers with multiple transactions is 4 minutes. Sixty percent of the customers are expected to have multiple transactions.