Tom jones the mechanic at golden muffler shop is able to, Ask an Expert

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Tom Jones, the mechanic at Golden Muffler Shop, is able to install new mufflers at an average rate of 3 per hour (or about 1 every 20 minutes). Customers seeking this service arrive at the shop on the average of 2 per hour. The owner of the Golden Muffler Shop estimates that the cost of customer waiting time, in terms of customer dissatisfaction and lost goodwill, is $10 per hour of time spent waiting in line. Assume that the salary of Tom Jones employee is $10 per hour. Find the total expected costs over an 8-hour day.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92575195

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