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A bank has one drive-up teller. The teller can serve at the rate of 11.5 bank customer in an hour. Customers arrive at the drive-up window on an average every 7.5 minutes. The bank is currently analyzing the possibility of adding a second drive-up window at an annual cost of $15,000. It is assumed that arriving cars would be equally divided between both windows. It is estimated that each minute’s reduction in customer waiting time would increase the bank’s revenue by $2,000 annually. Should the second drive-up window be installed?

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Operation Management, Management Studies

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