question archive The Maitland Furniture store gets an average of 40 customers per shift
The Maitland Furniture store gets an average of 40 customers per shift
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The Maitland Furniture store gets an average of 40 customers per shift. The manager of Maitland store wants to calculate whether she should hire 1, 2, 3, or 4 salespeople in a shift. Her objective is to minimize the Total Cost consisting of cost of waiting and cost of salesperson employed.
She has determined that the 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. So the total cost of waiting = number of customers per shift x average waiting time x $ 1.
The cost per salesperson per shift is $60.
- Provided the above data, how many salespeople do you think should be hired?
- If her objective is to shorten the average waiting time, please state at least 2 (two) recommendations that can effectively improve the service performance.
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Answer:
Calculate the total cost with one sales person
No of customers waiting= 40
Average waiting time= 7 minutes
Cost of sales person= $ 60
total cost of waiting = number of customers per shift x average waiting time x $ 1 + Cost of sales person
Total cost of waiting= (40 * 7 * 1) + 60
Total cost = $ 340
Calculate the total cost with two sales person
No of customers waiting= 40
Average waiting time= 4 minutes
Cost of sales person= $ 60
total cost of waiting = number of customers per shift x average waiting time x $ 1 + Cost of sales person
Total cost of waiting= (40 * 4 * 1) + 60* 2
Total cost of waiting= $ 280
Calculate the total cost with three sales persons
No of customers waiting= 40
Average waiting time= 3 minutes
Cost of sales person= $ 60
total cost of waiting = number of customers per shift x average waiting time x $ 1 + Cost of sales person
Total cost of waiting= (40 * 3 * 1) + 60* 3
Total cost of waiting= $ 300
Calculate the total cost with four sales person
No of customers waiting= 40
Average waiting time= 2 minutes
Cost of sales person= $ 60
total cost of waiting = number of customers per shift x average waiting time x $ 1 + Cost of sales person
Total cost of waiting= (40 * 2 * 1) + 60* 4
Total cost of waiting= $ 320
Because of minimum cost criteria, the manager needs to hire two sales person for minimum cost
b)
Find the choke points or bottle necks and try to clear them so that the waiting time is minimised
Focus on the front end
Focus on customer expectations
