Question: Since deregulation of the airline industry increased traffic and fierce
Since deregulation of the airline industry, increased traffic and fierce competition have forced Global Airlines to reexamine the efficiency and economy of its operations. As part of a campaign to improve customer service in a cost- effective manner, Global has focused on passenger check- in operations at its hub terminal. For best utilization of its check- in facilities, Global operates a common check- in system: passengers for all Global flights queue up in a single “snake line,” and each can be served at any one of several counters as clerks become available. Arrival rate is estimated at an average of 52 passengers per hour. During the check- in process, an agent confirms the reservation, assigns a seat, issues a boarding pass, and weighs, labels, and dispatches baggage. The entire process takes an average of 3 minutes. Agents are paid $ 20 per hour, and Global’s customer relations department estimates that for every minute that a customer spends waiting in line, Global loses $ 1 in missed flights, customer dissatisfaction, and future business. a. How many agents should Global airlines staff at its hub terminal? b. Global has surveyed both its customers and its com-petition and discovered that 3 minutes is an accept-able average waiting time. If Global wants to meet this industry norm, how many agents should it hire?
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