Bill First general Manager of Worthmore dept. Store has estimated that every hour of customer time spent waiting in line for the sales clerk to become avvailable cost the store $100 in lost sales and goodwill. Customers arrive at the checkout counter at a rate of 30 per hour, and the avareage service time is 3 minutes. The Poisson disdribution describes the arrivals and the service times are exponentially distributed. The number of sales clerks can be 2,3, or 4 with each one working at the same rate. Bill estimates the salary & benefits for each clerk to be $10 per hour. The store is open 10 hours per day. a) Find the average time in line if 2,3 and 4 clerks are used.
b) What is the total time spent waiting in line each day if 2,3, and 4 clerks are used?
c) Calculate the total of daily waiting cost and service cost if 2, 3 and 4 clerks are used.
What is the minimum total daily cost?