Question: Please answer the Case Study below : Students arrive at the Administrative Services Office at an average of one every 15 minutes, and their requests
Please answer the Case Study below :
Students arrive at the Administrative Services Office at an average of one every 15 minutes, and their requests take on average 10 minutes to be processed. The service counter is staffed by only one clerk, Budi Aribowo, who works eight hours per day. Assume Poisson arrivals and exponential service times. The managers of the Administrative Services Office estimate that the time a student spends waiting in line costs them (due to goodwill loss and so on) $10 per hour. To reduce the time a student spends waiting, they know that they need to improve Budis processing time. They are currently considering the following two options:
a. Install a computer system, with which Budi expects to be able to complete a student request 40 percent faster (from 2 minutes per request to 1 minute and 12 seconds, for example).
b. Hire another temporary clerk, who will work at the same rate as Budi. If the computer costs $99.50 to operate per day, while the temporary clerk gets paid $75 per day.
Is Budi right to prefer the hired help? Assume Poisson arrivals and exponential service times.
Thank You
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