Please see the calculation in the above example.

Gray's store gets an average of 60 customers per shift. The manager of Gray's wants to calculate whether she should hire 1,2,3, or 4 salespeople. She has determined that average waiting times will be 8 minutes with 1 salesperson, 5 minutes with 2 salespeople, 3 minutes with 3 salespeople, and 4 minutes with 4 salespeople. She has estimated the cost per minute that customers wait at $1. The cost per salesperson per shift (including benefits) is $80.

How many salespeople should be hired? Please explain your results and please show your work.

Thank you.

The Maitland Furniture store gets an average of 50 customers per shift. The manager of Maitland 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 1 salesperson 4 minutes with 2 salespeople, 3 minutes with 3 salespeople, and 2 minutes with 4 salespeople. She has estimated the cost per minute that customers wait at $1. The cost per salesperson per shift (including benefits) is $70. How many salespeople should be hired? Solution The manager's calculations are as follows: INTIMRER OPSALESPEOPLE 50 50 50 50 7 4 3 2 350 200 150 100 (a) Average number of customers per shift (b) Average waiting time per customer (minutes) (c) Total waiting time per shift (a X b) (minutes) (d) Cost per minute of waiting time (estimated) (e) Value of lost time (e X d) per shift (f) Salary cost per shift (g) Total cost per shift $1.00 $1.00 $ 350 $1.00 $ 200 $1.00 S 150 $ 100 $ 70 $ 280 $ 140 $ 340 $ 210 $ 360 5420 $ 380 Because the minimum total cost per shift relates to 2 salespeople, the manager's optimum strategy is to hire 2 salespeople