Mark05

Posted on February 20, 2017

Marketing Management Help 05

 

Q1. For the example provided in the book, 3 channels are assumed because 1 or 2 clerks would cause infinitely long lines. In the case of scenario 1 in our assignment, would we assume 6 channels because 5 or less would mean the number of customers in the line were infinite (since service rate = 12)? Then, when we switch to 4 minutes, it would need to be 5 channels? I didn’t understand the example in the book.
 
No, the service time is fixed, only our goal is changed. So when our goal switches to 4 minutes, the number of servers/channels will have to increase so we can serve customers faster.
 

Q2. Is the utilization rate analogous to the minutes that each clerk spends with the customer? (i.e. the maximum of 5 mins for scenario 1)
Yes, exactly.
 

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Q3. I am not sure how to answer “How many booth workers are required for the average potential customer to spend no more than 5 minutes waiting and being served”. Is this just assumed based on the required # of clerks to not create infinite lines since it is a Poisson distribution?
 
That is what the question asks you to find. If you are using the spreadsheet as attached to the announcement, you would use a combination of model 3 and the table in the book, 7.12, and substitute lq and the number of channels/servers, similar to example 7.3. The objective of the problems is to determine the number of servers.
 

Q4. You ask us to determine “How many booth workers are required for the average potential customer to spend no more than 4 minutes waiting and being served?” In order to do this, since the average time per customer is 5 minutes, do we just increase the S (number of channels) value until the chart shows a number below 4 minutes? Or do we change the entire service rate to 15 instead of 12 per hour per booth worker?
Yes, and you have to change the service rate, as you indicated.
 

Q5. One last thing I found confusing that may be helpful to others was the average time a customer spends in the system. Ws needs to be multiplied by 60 in the spreadsheet in order to determine the number of minutes the customer is in the system, correct?

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