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.:- M91645559

Have any Question?Write your Review or question?

Related Questions in Operation Management

Questiona company produces to a seasonal demand with the

Question: A company produces to a seasonal demand, with the forecast for the next 12 months as given below. Month Demand January 600 February 700 March 800 April 700 May 600 June 500 July 600 August 700 September 800 Oct ...

Organizations work best when they form partnerships and

Organizations work best when they form partnerships and relationships that will propel the strategic goals forward so they are achieved. Now that IT has become such a dominant factor in competitive businesses cross-unit ...

1 when one party acquires a license to use another

1. When one party acquires a license to use another party’s business model and intellectual property in the distribution of goods and services, the arrangement is a __________. limited liability partnership kickback fran ...

1 describe the six ebusiness tools for connecting and

1. Describe the six ebusiness tools for connecting and communicating. 2. Discuss the 3 implications of the legislative success of health associations. 3. Compare the four categories of ebusiness models. 4. Conduct Servic ...

1 number crunching affects life in so many ways than people

1. Number crunching affects life in so many ways than people ever imagine. Today’s best companies are analyzing databases to provide greater insights into human behavior. Ayres pointed out that recommendations offered by ...

The three partners of an international joint venture

The three partners of an international joint venture, located in the Asian country of one of the partners, are locked in a profit distribution dispute that repeated negotiations between the partners have failed to resolv ...

1 explain the concept of virtual network structure and

1. Explain the concept of Virtual Network Structure and provide examples. 2. What is Customer Lifetime Value? Why is it important? 3. What are “Facilitating Goods”?. 4. Explain the concept of Globalization Strategy and p ...

Taskpepsi or starbuckselect an organization of your choice

TASK: Pepsi or Starbuck Select an organization of your choice and carry out the following tasks. Conduct a research on the marketing and promotional strategies of the organization selected. Your Report should include the ...

1 discuss customer service level for an inventory system

1. Discuss customer service level for an inventory system within the context of quality management. 2. Describe the output of aggregate planning. When is aggregate planning most useful? 3. Describe what corporate governa ...

Prepare a brief maximum 500 - 750 word report that examines

Prepare a brief (maximum 500 - 750 word) report that examines whether, how, and why strategic management is/could/should be relevant and important for the specialization. Specialization: Healthcare 1. A summary of the ma ...

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