February 2016
Intermediate to advanced
480 pages
219h 58m
English
The two costs we consider here are cost of servers and cost of lost time waiting.
As described in the OM in Action box “Zero Wait Time Guarantee at This Michigan Hospital’s ER,” operations managers must recognize the trade-off that takes place between two costs: the cost of providing good service and the cost of customer or machine waiting time. Managers want queues that are short enough so that customers do not become unhappy and either leave without buying, or buy, but never return. However, managers may be willing to allow some waiting if it is balanced by a significant savings in service costs.
One means of evaluating ...