Group: Renz David M.
Dapatnapo
Jessa Faith G. Daganato
Clarence Guiang
Omar Tacubungan
Rhea Labeste
Activity: Retail Management
1. Is the current staffing plan optimal? Estimate the daily requirement of sales persons (excluding staff at
billing counters).
ANSWER: The company believes that at least one sales person is required per 15 customers to provide
assistant during their visit to the mall. We suggest that if the format is become more convenient to the
customers, that is, the products are assorted and allocated properly into their places, the customers will be
able to easily access the store. The number of sales people could be reduced since customers are now able
to easily locate the products needed to purchase. Especially during weekdays, the first shift, the sales
representatives could be deducted and instead placed on weekends when there are more customers
visiting the store. If we calculate the number of sales persons required on weekends it equals to 13keeping
in mind 1 representative for 15 customers, since the number of people visiting the store on weekend’s id
around 200.
2. Determine the number of billing counters required at different times during each day in order to ensure
that 95% of the customers will not have to wait for more than 5 minutes at the billing counter. Assume
that the inter-arrival time between customers is normally distributed around the mean for each time
interval.
ANSWER: According to the case, there can only be a maximum of 6 billing staff members, which means
that the number of billing counters and billing machines is constrained. If we increase the number of
billing counters from 6 to 10, each counter can typically handle 5 customers, which shortens the time. If
the billing counters are set up appropriately, the clients' waiting time will be minimized, and they will
receive prompt service. Also, the billing area or counter should be spacious, and the layout of the shop
must be clear, unique, and wide enough to make clients wait patiently. If the billing counter appear to not
have enough space, the area will be crowded and that takes a lot of customers time to wait. Lastly, trained
billing professionals must be engaged or be the one in charge to ensure that the billing machines are
operational and linked to the relevant banks for debit and credit card purchases.
3. What are the queue length is achieved in the above case? What is the average waiting time for each
customer.
ANSWER: According to the case, the average line at the busiest hours consisted of 40 to 45 customers
each hour, with an average wait time of 3 minutes for each.
4. Estimate the revenue loss per week because of not meeting customers’ expectations of billing period.
ANSWER: The estimated revenue loss per week because of not meeting customers’ expectations of
billing period is 2,070
5. Analyze the trade-off between purchasing and manning the billing machines versus losing the revenue
ANSWER: The trade-off between purchasing and manning the billing machines is higher than the losing
the revenue because of not meeting the customers’ expectations.
6.Determine the optimal number of billing machines to be purchased.
ANSWER: In the case where the maximum billing staff during the weekdays is 6, this indicates that there
are only so many billing counters and machines we can have, if we expand the number of billing counters
from 6 to 10, each counter can usually handle 5 customers, as a result, the time would be shorter.
Standing in a line with no more than 5 people is more convenient, and the wait time will be significantly
less. The cost of the billing machine is Rs. 16700, if we purchase 4 more billing machines it would cost
66800. In the long run, it will benefit the store and severely reduced down on customer wait times.
7. If the sales persons could also be used for the billing counters if they are under-utilized, then estimate
the daily requirement of staff.
ANSWER: It tells managers what number of labor hours are needed for the volume of business forecast
for a given meal period. The labor hours can be converted into labor dollars to establish standard labor
costs. The staffing guide serves as a tool for planning work schedules and controlling labor costs.
