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?
Answer to relevant QuestionsDiscuss why it is often easier to measure average inventory and average throughput rather than aver-age flow time. ABC Corporation’s consolidated income statement and balance sheet for the years 2011 and 2012 is shown in Table 3.9 (in thousands of dollars). How do you think cash flow performance in 2011 compares with that of 2012 in ...The Traffic Court of King James County operates between the hours of 9 A. M. and 1 P. M. Each morning, roughly at 9 p. m., 200 defendants show up for trial involving traffic violations, such as speeding, illegal parking, and ...When customers of Henniker Bank believe a mistake has been made on their account statements, their claims are forwarded to the bank’s research department, whose trained clerks carefully research and document the ...In measuring and evaluating the quality of banking services, analysts have found that customers regard accuracy, timeliness, and responsiveness as the most important characteristics. Accordingly, First Chicago Bank ...
Post your question