The Bank Manager of a Busy Downtown Location Found Herself

question 39

Multiple Choice

The bank manager of a busy downtown location found herself unable to find good teller help so she invested in an ATM to handle the routine withdrawals that tended to occupy an inordinate amount the teller's time.Before she installed the ATM she found that customers were arriving on average every 60 seconds (Poisson distributed) and it took a teller 20 seconds (exponentially distributed) to process their request.The ATM is able to maintain a constant 30 second service time.What is the impact on the waiting time for the customers?

• A) There is no change.
• B) The wait in the ATM line is 50% shorter than the wait in the teller line.
• C) The wait in the ATM line is 50% higher than the wait in the teller line.
• D) The wait in the ATM line is 25% shorter than the teller line.

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Definitions:

Contribution Margin Ratio

A financial metric showing the percentage of sales revenue remaining after variable production costs have been deducted, indicating how much contributes towards covering fixed costs and generating profits.

Net Operating Income

Profit generated from a company's regular business operations, excluding deductions for interest and taxes.

Unit Sales Volume

The quantity of products sold by a company, not taking into account any discounts or returns.

Target Profit

The desired profit a company aims to achieve for a specific period or for a specific product.