Question

The Chattanooga Furniture store gets an average of 50 customers per shift. Marilyn Helms, the manager, wants to calculate whether she should hire 1, 2, 3, or 4 salespeople. She has determined that average waiting times will be 7 minutes with one salesperson, 4 minutes with two salespeople, 3 minutes with three salespeople, and 2 minutes with four salespeople. She has estimated the cost per minute that customers wait at $1. The cost per salesperson per shift (including fringe benefits) is $70.
One Server?


Two Servers?


Three Servers?


Four Servers?


Based on this information, Marilyn has a minimum total cost per shift with ___ people.

Answer 1

Answer

The total cost is lower when the company hires two salespeople. Thus, hiring two people is recommended.

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Explanation  

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