Refer to Figure 17. Bill Yew estimates the cost of waiting to be $27 per hour, a

Question

Refer to Figure 17. Bill Yew estimates the cost of waiting to be $27 per hour, and he pays tax experts $47 per hour. If Bill employs two tax preparers, what is the total cost per hour for the system? (Answer in $, without the dollar sign)

Pay More Tax Service invites potential customers to "walk-in" to get free answers to relatively ple tax questions. Subsequent interviews with paying customers confirm that this is an SIml effective way to market the business. Pay More owner Bill Yew is concerned that with just one tax expert answering questions the wait may be costing some potential customers to be lost. On a trial basis he has gathered the following data for both one and two tax preparers (servers). Time units are in hours (i.e., average arrival rate is 3.5 customers per hour) Input Data Operating Characteristics Arrival rate (M) 3.5 Average server utilization (p) 0.778 4.5 Average number of customers in the queue (La) 2.722 Service rate (u) 1 Average number of customers in the system (L) 3.500 Number of servers (s) Average waiting time in the queue (Wa) 0.778 1.000 Average time in the system (W) Probability of time) system is empty (Po) 0.222 Input Data Operating Characteristics Arrival rate (M) 3.5 Average server utilization (p) 0.389 (HD 4.5 Average number of customers in the queue (La) 0.139 Service rate Number of servers (s) 2 Average number of customers in the system (L) 0.916 Average waiting time in the queue (Wa) 0.040 Average time in the system (W) 0.262 Probability of time) system is empty (Po) 0.440

Explanation / Answer

The average waiting time has reduced from 0.778 to 0.040. Therefore, cost is computed as: 27*(0.778-0.040)=19.926. Now, he gives $ 47 to each tax preparers, therefore,total cost per hour for the system is: 19.926+47=66.926

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