Question: The Schmedley Discount Department Store has approximately 300 customers shopping in its store between 9 am and 5 pm on Saturdays.; In deciding how many cash registers to keep open each Saturday Schmedely's manager considers two factors: customer waiting time (and the associated waiting cost) and the service costs of employing additional checkout clerks. Checkout clerks are paid an average of $8.00 an hour. When only one is on duty, the waiting time per customer is about 10 minutes (or 1/6 hour): when two clerks are on duty, the average checko ut time is 6 minutes per person : 4 minutes when three clerks are working: and 3 minutes when  four clerks are on duty.

Schmedley's management has conducted customer surveys and has been able to estimate that the store suffers approximately $10 in lost sales and goodwill for every HOUR of customer time spent waiting in checkout lines. Using the information provided determine the optimal number of clerks to have on duty each S aturday to minimize the store's total expected cost.

Price: $2.99

Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document