There are approximately 300 customers shopping in Fackert Department Store in Mexico City between 9 A.M. and 5 P.M. on Saturdays. All those entering the store will make purchases. When deciding how many cash registers to keep open each Saturday, owner Susanna Fackert considers 2 factors: customer waiting time (and the associated waiting cost) and the service costs of employing additional checkout clerks. Checkout clerks are paid an average of $4 per hour. When only 1 is on duty, the waiting time to checkout per customer is about 10 minutes (or 1/6 of an hour); when 2 clerks are on duty, average waiting time is 6 minutes per person; 4 minutes when 3 clerks are working; and 3 minutes with 4 clerks. Ms. Fackert has conducted customer satisfaction surveys and has been able to estimate that the store suffers approximately $5 in lost sales and goodwill for every hour of customer time spent in line waiting to checkout. Using the information provided, determine the optimal number of clerks to have on duty each Saturday in order to minimize the store’s total expected cost.
Selective Demand Advertising
Advertising includes communicating with people regarding a product or any service or an idea to sell or promote them. Advertising attracts the consumer towards a specific brand or to a product of a brand which enables them to buy products from that company and hence the company can prosper. Advertising is important both for the company which is in the industry for a longer period of time and even for those who are just starting up with their business. These days it is found that not only the transmission of the messages of a particular brand is done through television or radio but also it is done on the social media platform. Particularly for homegrown brands, social media has become one of the most important platforms which promote the advertising of their products and attract consumer to demand the same. The strategy to have a good advertising background is important for marketing a particular company or a brand.
Primary Demand Advertising
This topic is significant in the professional exams for both undergraduate and graduate courses, especially for
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There are approximately 300 customers shopping in Fackert Department Store in Mexico City between 9 A.M. and 5 P.M. on Saturdays. All those entering the store will make purchases. When deciding how many cash registers to keep open each Saturday, owner Susanna Fackert considers 2 factors: customer waiting time (and the associated waiting cost) and the service costs of employing additional checkout clerks. Checkout clerks are paid an average of $4 per hour. When only 1 is on duty, the waiting time to checkout per customer is about 10 minutes (or 1/6 of an hour); when 2 clerks are on duty, average waiting time is 6 minutes per person; 4 minutes when 3 clerks are working; and 3 minutes with 4 clerks.
Ms. Fackert has conducted customer satisfaction surveys and has been able to estimate that the store suffers approximately $5 in lost sales and goodwill for every hour of customer time spent in line waiting to checkout. Using the information provided, determine the optimal number of clerks to have on duty each Saturday in order to minimize the store’s total expected cost.
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