Question: The Chattanooga Furniture store gets an average of 50 customers

The Chattanooga Furniture store gets an average of 50 customers per shift. Marilyn Helms, the manager, wants to calculate whether she should hire 1, 2, 3, or 4 salespeople. She has determined that average waiting times will be 7 minutes with one sales-person, 4 minutes with two salespeople, 3 minutes with three sales-people, and 2 minutes with four salespeople. She has estimated the cost per minute that customers wait at $1. The cost per salesperson per shift (including fringe benefits) is $70.
How many salespeople should be hired?


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  • CreatedJuly 23, 2013
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