The insurance department at Shear's has two agents, cach working at a mean speed of 8...

 

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The insurance department at Shear's has two agents, cach working at a mean speed of 8 customers per hour. Customers arrive at the insurance desk at a mean rate of one every six minutes and form a single queue. Management feels that some customers are going to find the wait at the desk too long and take their business to Word's, Shear's competitor. In order to reduce the time required by an agent to serve a customer Shear's is contemplating installing one of two minicomputer systems: System A which leases for $18 per day and will increase an agent's efficiency by 25%; or, System B which leases for $23 per day and will increase an agent's efficiency by 50%. Agents work 8-hour days. If Shear's estimates its cost of having a customer in the system at $3 per hour, determine whether Shear's should install a new minicomputer system, and if so, which one. Provide a brief explanation to support your recommendation. The insurance department at Shear's has two agents, cach working at a mean speed of 8 customers per hour. Customers arrive at the insurance desk at a mean rate of one every six minutes and form a single queue. Management feels that some customers are going to find the wait at the desk too long and take their business to Word's, Shear's competitor. In order to reduce the time required by an agent to serve a customer Shear's is contemplating installing one of two minicomputer systems: System A which leases for $18 per day and will increase an agent's efficiency by 25%; or, System B which leases for $23 per day and will increase an agent's efficiency by 50%. Agents work 8-hour days. If Shear's estimates its cost of having a customer in the system at $3 per hour, determine whether Shear's should install a new minicomputer system, and if so, which one. Provide a brief explanation to support your recommendation.

Answer rating: 100% (QA)

Solution Arrival rate of customers lambda 606 10 per hour Service rate mu 8 per hour Utilisation rho ... View the full answer