The Winter Park Hotel manager Donna Shader is considering restructuring the front desk to reach optimum staff efficiency and guest service. At present, the hotel has five clerks on duty, each with a separate waiting line, during the peak check-in time of 3:00 P.M. to 5:00 P.M. Observation of arrivals during this time show that an average of 90 guests arrive each Hour (although there is no upward limit on the number that could arrive at any given time). It takes an average of 3 minutes for the front-desk clerk to register each guest.

Ms. Shader is considering a new plan for improving guest service by reducing the time guests wait in line. The new plan is to implement a single-line system. All guests could be served from a single waiting line by whichever five clerks became available. This option would require sufficient lobby space for a substantial queue. The average hourly waiting time cost per customer is $15, and the hourly wage per clerk is $30. (Show all your work: Dont use the queue Excel template)

Discussion Questions

Determine the average time (W) a guest spends checking in. How would this change under each of the state options?

Current Plan:

New Plan:

What is the total hourly cost, including wage and customer waiting costs?

Current Plan:

New Plan:

3. Which option do you recommend?