The National Bank of Union City currently has one outsidedrive-up teller. It takes the teller an average of three minutes (exponentially distributed) to serve a bank customer.Customers arrive at the drive-up window at the rate of12 per hour (Poisson distributed). The bank operations officer is currently analyzing the possibility of adding a second drive-up window at an annual cost of $20,000. It isassumed that arriving cars would be equally divided between both windows. The operations officer estimates thateach minute’s reduction in customer waiting time wouldincrease the bank’s revenue by $2000 annually. Should thesecond drive-up window be installed? What other factorsshould be considered in the decision besides cost?
The National Bank of Union City currently has one outside
drive-up teller. It takes the teller an average of three minutes (exponentially distributed) to serve a bank customer.
Customers arrive at the drive-up window at the rate of
12 per hour (Poisson distributed). The bank operations officer is currently analyzing the possibility of adding a second drive-up window at an annual cost of $20,000. It is
assumed that arriving cars would be equally divided between both windows. The operations officer estimates that
each minute’s reduction in customer waiting time would
increase the bank’s revenue by $2000 annually. Should the
second drive-up window be installed? What other factors
should be considered in the decision besides cost?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
