An auto-rental agency has two employees at its service, Ask an Expert

Management Studies

An auto-rental agency has two employees at its service counter. Customers arrive at an average rate of 18 per hour. The service times mean a service rate of 15 customers per hour. The coefficients of variation of the inter-arrival times and the service times are both equal to 1.

a. What are the appropriate measures of service for this facility?

b. Each additional customer gives the agency $15 in additional contribution (assuming current costs are held constant). If the average waiting time overall could be reduced 75%, two more customers per hour would be drawn from competing auto-rental agencies. Should additional employees be hired for $12 an hour?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91645453

Have any Question?Write your Review or question?

Related Questions in Operation Management

The role of the marketing manager during the implementation

The role of the marketing manager during the implementation of the marketing strategy. How the implementation plan addressed or might have prevented potential customer complaints The relationship between implementation a ...

Ethical dilemma your company is in a race with two other

Ethical Dilemma: Your company is in a race with two other enterprises to develop a new technological standard for streaming high-definition video over the Internet. The three technologies are incompatible with each other ...

1 which of the following strategies for reducing the common

1. Which of the following strategies for reducing the common information effect has been found to be most effective? 2. Which of the following actions by the team or their leadership can result in reduced team performanc ...

1 in relation with content analysis content is the visible

1. In relation with content analysis, _______ content is the visible, surface content. a. Direct b. Latent c. Manifest d. None of the above 2. You are asked to agree or disagree on the following, "The U.S. should abandon ...

Bob richards the production manager of stella elements in

Bob Richards, the production manager of Stella Elements, in Boca Raton, Florida, is preparing his quarterly report, which is to include a productivity analysis for his department. One of the inputs is production data pre ...

Most major retailers compile information about you based on

Most major retailers compile information about you based on what, when, and how you buy. For example, Target Brands, Inc. uses a very sophisticated data collection process that assigns each shopper a unique guest identi ...

The effectiveness of the group depended a lot on the group

The effectiveness of the group depended a lot on the group contribution, participation and our group’s leader role. Most of our group members were able to attend group meetings regularly and arrives on time, contributing ...

1 when using a level capacity strategy or ldquolevel

1. When using a "level capacity strategy" or “level production strategy” in aggregate planning, variations in demand are met by using which of the following options? I. varying output during regular time without changing ...

1 develop an extended process map for washing a car make

1. Develop an extended process map for washing a car. Make five recommendations for simplifying the extended process. 2. Using your own experience in the workplace (or as a student) discuss a conflict situation that you ...

One of my favorite bands in the 60s was junior walker and

One of my favorite bands in the 60s was Junior Walker and The Allstars. (Nobody could play sax quite like Junior!) His signature song was “What Does It Take To Win Your Love?[1969]” I can’t recall having Junior in my Man ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert