Use This Information to Answer the Following Questions

question 36

Essay

Use this information to answer the following questions.
A fast food restaurant currently has 2 cashiers.Upon arrival,customers form a single line and place their food order at the next available register.Assume that customers arrive at the rate of 35 per hour.It takes an average of 3 minutes to place and process each customer's order.Assume that arrival rate follows a Poisson distribution and service time follows an exponential distribution.
-Refer to the information above.Assume that each employee earns an hourly wage of $6.50/hour.Also,assume that the cost of customer waiting time is $10/hour.What would be the impact of hiring an additional employee on customers' waiting time and total costs?

---

Definitions:

Budgeted Production

The planned volume of goods a company aims to manufacture over a certain period, often used for planning and control purposes.

Raw Materials Inventory

The total cost of all the raw materials that are used in production but have not yet been processed into finished goods.

Raw Materials Purchases

The total cost a company incurs for acquiring the raw materials needed in the production process.

Budgeted Balance Sheet

A projected financial statement showing the expected financial position of a company at a future date, taking into account its assets, liabilities, and equity.