An Introduction to Management Science 13th Edition by David Anderson,Dennis Sweeney ,Thomas Williams ,Jeffrey Camm, Kipp Martin

Exercise 33

Refer to the Agan Interior Design situation in Problem 11. Agan's management, would, like to evaluate two alternatives:
• Use one consultant with an average service time of 8 minutes per customer.
• Expand to two consultants, each of whom has an average service time of minutes per customer.
If the consultants are paid $16 per hour and the customer waiting time is valued at $25 per hour for waiting time prior to service, should Agan expand to the two-consultant system? Explain.