Who should be hired if the objective is to minimize cost per hour?

Anonymous
timer Asked: Apr 11th, 2017

Question description

A Jewelry store is seeking a salesperson for its evening shift. Two experienced applicants have applied for the position, each demanding different salaries. Customers arrive at the rate of 10 per hour. The average service times for each have been made available from their supervisors. the first applicant, Ken, has an average service time of 5 minutes and demands a salary of $10 an hour. The more experienced second applicant, Tom, has average service time of 4 minutes and demands a salary of $18 per hour. Cost of waiting is estimated to be $50 an hour. If arrivals are Poisson distributed and service times are expoential, who should be hired if the objective is to minimize cost per hour?

A.

Ken

B.

Tom

C.

both

D.

neither

E.

none of these

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