Question: Problem 2 . ( 1 0 pts ) With the information given in Problem 1 , the managers of the Administrative Services Office know that

Problem 2.(10 pts)
With the information given in Problem 1, the managers of the Administrative Services
Office know that students hate waiting in line before getting served. The cost of good
will is $10/hour for every hour that each student waits in lines. To reduce the time a
student spends waiting, they know that they need to improve Judys processing time
(see the last problem). They are currently considering the following two options:
a. Install a computer system, with which Judy 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 working in parallel serving a single queue, who
will work at the same rate as Judy.
If the computer costs $50 to operate per day, while the temporary clerk gets paid $70
per day, is Judy right to prefer the hired help? Assume exponential interarrival times
and exponential service times.Problem 2.(10 pts)
With the information given in Problem 1, the managers of the Administrative Services
Office know that students hate waiting in line before getting served. The cost of good
will is $10/hour for every hour that each student waits in lines. To reduce the time a
student spends waiting, they know that they need to improve Judys processing time
(see the last problem). They are currently considering the following two options:
a. Install a computer system, with which Judy 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 working in parallel serving a single queue, who
will work at the same rate as Judy.
If the computer costs $50 to operate per day, while the temporary clerk gets paid $70
per day, is Judy right to prefer the hired help? Assume exponential interarrival times
and exponential service times.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!