The Schmedley Discount Department Store has approximately 300 customers shopping in its store between 9 A.M....

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The Schmedley Discount Department Store has approximately 300customers shopping in its store between 9 A.M. and 5 P.M. onSaturdays. In deciding how many cash registers to keep open eachSaturday, Schmedley’s manager considers two factors: customerwaiting time (and the associated waiting cost) and the servicecosts of employing additional checkout clerks. Checkout clerks arepaid an average of $8 per hour. When only one is on duty, thewaiting time per customer is about 10 minutes (or hour); when twoclerks are on duty, the average checkout time is 6 minutes perperson; 4 minutes when three clerks are working; and 3 minutes whenfour clerks are on duty. Schmedley’s management has conductedcustomer satisfaction surveys and has been able to estimate thatthe store suffers approximately $10 in lost sales and goodwill forevery hour of customer time spent waiting in checkout lines.
Number of customers
Average waiting time (per customer)
Total customer waiting time
Cost per waiting hour
Total waiting cost
Checkout clerk hourly salary
Total pay of clerks for an 8-hour shift
Total expected cost

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The Schmedley Discount Department Store has approximately 300customers shopping in its store between 9 A.M. and 5 P.M. onSaturdays. In deciding how many cash registers to keep open eachSaturday, Schmedley’s manager considers two factors: customerwaiting time (and the associated waiting cost) and the servicecosts of employing additional checkout clerks. Checkout clerks arepaid an average of $8 per hour. When only one is on duty, thewaiting time per customer is about 10 minutes (or hour); when twoclerks are on duty, the average checkout time is 6 minutes perperson; 4 minutes when three clerks are working; and 3 minutes whenfour clerks are on duty. Schmedley’s management has conductedcustomer satisfaction surveys and has been able to estimate thatthe store suffers approximately $10 in lost sales and goodwill forevery hour of customer time spent waiting in checkout lines.Number of customersAverage waiting time (per customer) Total customer waiting timeCost per waiting hourTotal waiting costCheckout clerk hourly salaryTotal pay of clerks for an 8-hour shiftTotal expected cost