Question

In: Operations Management

Q3) Consider this situation: A manager is contemplating making changes to a single-server system that is...

Q3) Consider this situation: A manager is contemplating making changes to a single-server system that is expected to double the service rate, and still have just one server.

Q3.a) Would you (intuitively) think that doubling the service rate of a single-server system would cut the average waiting time in line in half?

Q3.b) What are some managerial and financial implications of your analysis?

Solutions

Expert Solution

Some managerial implications of the analysis

  • This can lead to efficiency in service delivery.
  • Leads to growth of the organization.
  • Can lead to increase in the number of customers.
  • Reduces time wastage.

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