Question: Refer to the Agan Interior Design situation in Problem 3. Agan is evaluating two alternatives: 1. Use one consultant with an average service time of
1. Use one consultant with an average service time of 8 minutes per customer;
2. Expand to two consultants, each of whom has an average service time of 10 minutes per customer.
If the consultants are paid $16 per hour and the customer waiting time is valued at $25 per hour, should Agan expand to the two-consultant system? Explain.
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1 consultant Total cost 2509 16 1825 per hour 2 consultants Total cost 25011 216 32275 pe... View full answer
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