Assignment:
Customers arrive at a retail outlet at a rate of 30 customers per hour. The total time that customers spend in the store contributes to their dissatisfaction. A wasted customer hour has been estimated to cost $10. Management now has two options: either employ one fully trained fast clerk who is able to serve up to 50 customers per hour, or two less trained slower clerks, who can handle up to 30 customers per hour each. Each of the two clerks would have his own waiting line (the supermarket system). Each of the slow clerks earns $6 per hour, while the fast clerk is fully aware of his availability, and asks for $16 per hour.
(a) Should we hire the two slower clerks or the one fast clerk?
(b) A new applicant for the job offers his services. The company tried him out and it turned out that he is able to handle no less than 75 customers per hour. Based on the result under (a), what is the maximal amount that we would pay him?
Provide complete and step by step solution for the question and show calculations and use formulas.