BUSN 603 Problem Set 6

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Part 1 of 2 - Part 1 40.0 Points
This part of the question is based on the following information.
The Schmedley Discount Department Store has approximately 300 customers shopping in its
store between 9 A.M. and 5 P.M. on Saturdays. In deciding how many cash registers to keep
open each Saturday, Schmedley’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 per hour. When only one is on duty, the waiting time
per customer is about 10 minutes (or hour); when two clerks are on duty, the average checkout
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 satisfaction 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.
1. The total customer waiting time is __ hours when there is only one clerk, and it will be reduced
to only __​ ​hours if there are four clerks. (Please only enter an integer and include no units.)

2. 2. The total wait cost is __ dollars when there is only one clerk, and it will be reduced to only __
dollars if there are four clerks. (Please only enter an integer and include no units.)
3. The total cost of hiring is only __ dollars when there is only one clerk, and it will be increased
to __ dollars if there are four clerks. (Please only enter an integer and include no units.)
4. To minimize the total expected cost based on your calculations above, the optimal number of
clerks to have on duty each Sunday is ___________.
5. The average number of trucks in the system is __ trucks. (Please only enter an integer and
include no units.)
6. The average time per truck spent in the system is __ ​minutes​. (Please only enter an integer
and include no units.)
7. The utilization rate for the bin area is __ . (Please round it to two decimal points.)
8. The probability that there are more than 3 trucks in the system is about __. (Please round it to
two decimal points.)
9. The total daily cost in the unloading process is ___ ​per day​. (Please only enter an integer and
include no units.)
10. Based on the above calculation, the net saving/loss of enlarging the bin is ___ dollars, hence
the cooperative ____ proceed to enlarge the bin. (Please round to an integer and include no
units. Use a "-" sign in front the number to indicate a net loss, if there is a loss. Also, enter only
"should" or "should not" in the second blanket.)