a) The A&C shopping Mall is a busy centre for residents in East Legon and its...

 

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a) The A&C shopping Mall is a busy centre for residents in East Legon and its surrounding community. Assume that 2 customers arrive every 12 minutes and 3 customers are served every 15 minutes and that currently, there is only one cashier. What will be is the average waiting time in minutes before service begins? Major Topic 6 Queuing Theory: Blooms Designation EV Score 7 b) Management perceives that the waiting time computed in (a) above is not acceptable and is faced with two options. Management can either employ an assistant for the cashier or open a second cash machine. The former, if implemented, will enable 4 requests to be served every 15 minutes and the assistant will receive a monthly salary of GH¢160. The latter, if implemented, will improve the arrival rate to 1 customer every 12 minutes. However, it requires an initial capital outlay of GH¢3,000 and the cashier who will man the cash machine will receive a monthly salary of GH¢250. The shop avoids a loss in sales of GHC80.00 per month for each minute that average customer waiting time is reduced. (i) Evaluate the financial gain to A&C under option 1 and advise management on this option (ii) Evaluate the financial gain to A&C under option 2, assuming the initial capital outlay is sunk cost and advise management on this option a) The A&C shopping Mall is a busy centre for residents in East Legon and its surrounding community. Assume that 2 customers arrive every 12 minutes and 3 customers are served every 15 minutes and that currently, there is only one cashier. What will be is the average waiting time in minutes before service begins? Major Topic 6 Queuing Theory: Blooms Designation EV Score 7 b) Management perceives that the waiting time computed in (a) above is not acceptable and is faced with two options. Management can either employ an assistant for the cashier or open a second cash machine. The former, if implemented, will enable 4 requests to be served every 15 minutes and the assistant will receive a monthly salary of GH¢160. The latter, if implemented, will improve the arrival rate to 1 customer every 12 minutes. However, it requires an initial capital outlay of GH¢3,000 and the cashier who will man the cash machine will receive a monthly salary of GH¢250. The shop avoids a loss in sales of GHC80.00 per month for each minute that average customer waiting time is reduced. (i) Evaluate the financial gain to A&C under option 1 and advise management on this option (ii) Evaluate the financial gain to A&C under option 2, assuming the initial capital outlay is sunk cost and advise management on this option

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