Question: 1 1 . S 1 . Managing Waiting Lines at First Bank of Seattle Sally Gordon completed her MBA degree a few years ago and
S Managing Waiting Lines at First Bank
of Seattle
Sally Gordon completed her MBA degree a few years ago and
is proud to have earned a promotion to vice president for cus
tomer services already at the First Bank of Seattle. One of her
responsibilities is to manage how tellers provide services to cus
tomers. so she is taking a hard look at this area of the bank's
operations. Customers needing teller service arrive randomly at
a mean rate of per hour. Customers wait in a single line and
are served by the next available teller when they reach the front
of the line. Each service takes a variable amount of time assume
three minutes. The tellers earn an average wage of $ per hour.
a If two tellers are used, what will be the average waiting time
for a customer before reaching a teller? On average, how
many customers will be in the bank, including those currently
being served?
b Company policy is to have no more than a percent chanot
that a customer will need to wait more than five minules :
fore reaching a teller. How many tellers need to be used in
order to meet this standard?
c Sally feels that a significant cost is incurred by making A
customer wait because of potential lost future busines:
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