Replacing the agent with the specialist


An immigration agent at an airport, on an average, could process 15 entrants in one hour, if he was busy all the time. On an average, an entrant arrives at his station at every 5 minutes. The agent can be replaced by a more efficient specialist. The specialist can process 20 entrants in one hour. The specialist is paid $35 per hour whereas the current agent is paid $22 per hour. If an entrant's time is considered to be worth $10 per hour, is it worth to replace the agent with the specialist?

Note: Do hand calculations to answer this question.

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Operation Management: Replacing the agent with the specialist
Reference No:- TGS0513167

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