Assignment:
Customers arrive at a retail outlet a rate of 12 per hour. The total time that customers spend in the store contributes to their dissatisfaction. A wasted customer hour has been estimated to cost $20. A clerk at the checkout counter typically earns $8 and can serve up to 10 customers per hour.
(a) What is the cost-minimal number of checkout counters?
(b) Suppose now that an alternative to the system under (a) is to employ two clerks who have been retrained. Their retraining enables them to serve up to 15 customers per hour and they will earn $10 per hour. Is it worth considering this option?
Provide complete and step by step solution for the question and show calculations and use formulas.