Question 4 (A) A and C mall is a busy centre for residents in East Legon and its sourrounding community. Assume that 2 customers arrive every 12 minutes and 3 customers are served every 15 minutes and that currently, there is only one cashier. a) Determine the average waiting time in minutes before service begins. b) Advice the management the proportion of the time that a customer has to wait. (B). Management perceives that the waiting time computed in (ii) above is not acceptable and is faced with two options. Management can either employ an assistant for the cashier or open a second cash machine. The former, if implemented, will enable 4 requests to be served every 15 minutes and the assistant will receive a monthly salary of GH₵160. The latter, if implemented will improve the arrival rate to 1 customer every 12 minutes. However, it requires an initial capital outlay of GH₵3000 and the cashier who will operate the cash machine will receive a monthly salary of GH₵250. The shop avoids a loss in sales of GH₵80 per month for each minutes that average customer waiting time is reduced. c) Calculate the financial gain to A and C mall under option 1 and advice management on the option. d) Calculate the financial gain to A and C mall under option 2, assuming the initial capital outlay is sunk cost and advice management on this option.
Question 4
(A)
A and C mall is a busy centre for residents in East Legon and its
sourrounding community. Assume that 2 customers arrive every 12 minutes
and 3 customers are served every 15 minutes and that currently, there is only
one cashier.
a) Determine the average waiting time in minutes before service begins.
b) Advice the management the proportion of the time that a customer has
to wait.
(B). Management perceives that the waiting time computed in (ii) above is
not acceptable and is faced with two options.
Management can either employ an assistant for the cashier or open a second
cash machine.
The former, if implemented, will enable 4 requests to be served every 15
minutes and the assistant will receive a monthly salary of GH₵160. The
latter, if implemented will improve the arrival rate to 1 customer every 12
minutes.
However, it requires an initial capital outlay of GH₵3000 and the cashier
who will operate the cash machine will receive a monthly salary of GH₵250.
The shop avoids a loss in sales of GH₵80 per month for each minutes that
average customer waiting time is reduced.
c) Calculate the financial gain to A and C mall under option 1 and advice
management on the option.
d) Calculate the financial gain to A and C mall under option 2, assuming the initial capital outlay is sunk cost and advice management on this option.
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