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g Customers arrive at the window at a rate of 12 per hour and it take the teller 4 minutes, on average, to serve a customer. Use this information to calculate the requested items in columns a and b. The BHFC's operations manager is considering adding a second window to this branch which would cost the bank $20,000 annually. The operations manager also estimates the bank's revenue will increase by $2,000 annually for each minute of reduction in custimer waiting time. Should the BHFC add the second window?

Sagot :

anthougo

Answer:

The BHFC

The BHFC should add the second window as it will half customer's waiting time and increase revenue for the branch.

Explanation:

a) Data and Calculations:

Customers arrival rate at the window = 12/hour

equivalent to 12/60 minutes or 1/5 minutes

Time the teller takes to serve a customer = 4 minutes

Total time to serve 12 customers in an hour = 48 minutes

Cost of adding a second window to the branch = $20,000

Savings in reducing customer waiting time = $2,000

Average customer waiting time = 4 minutes

Total time to serve 12 customers in an hour using the second window = 24 minutes (48/2)

Therefore, customers waiting time will half to 2 minutes (4/2)

Increase in revenue by the reduction in customer waiting time = $2,000 * 24 = $48,000

Net saving = $28,000 ($48,000 - $20,000)

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