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ABCD currently has one outside drive-up teller. It takes the teller an average of four minutes...

ABCD currently has one outside drive-up teller. It takes the teller an average of four minutes (exponentially distributed) to serve a bank customer. Customers arrive at the drive-up window at the rate of 12 per hour (poisson distributed). The bank operations officer is currently analyzing the possibility of adding a second drive-up window at an annual cost of $20,000. It is assumed that arriving cars would be equally divided between both windows. The operations officer estimates that each minute’s reduction in customer waiting time would increase the bank’s revenue by $2,000 annually.

  1. Is it cost effective to install a second drive-up window? (Show calculations to support your answer.)
  2. What other factors should be considered in the decision besides cost?

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OPERATIONS MANAGEMENT QUESTION........ I HOPE IT USEFUL TO YOU, IF YOU HAVE ANY DOUBT PLZ COMMENT IN BOX. PLZ GIVE ME UP-THUMB... ALL THE BEST.... THANKS.....

ekkarill92 answered 2 years ago
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