Do managers of the administrative services office estimate that the time a student spends waiting in line costs them (due to goodwill loss and so on) $10/hr. to reduce the time a student spends waiting , they know that they need to improve Judy's processing time (see problem 5). They are currently considering the following tow options:
a. install a computer system , with which Judy expects to be able to complete a student request 40percent faster (from 2min/request to 1min and 12sec, for example).
b. Hire another temporary clerk, who will work the same rate as Judy.
If the computer program cost $99.50 to operate per day, while the temporary clerk gets paid $75/day, is Judy right to prefer the hired help? Assume Poisson arrivals and exponential service times.