The motorway management perceives that the waiting time computed in (a) above is not acceptable and it wishes to reduce it, first, by adding an extra tollbooth assistant to help improve the service rate to 250 motorists every 8-hour-day. The tollbooth attendant will be paid a monthly salary of GH¢400. The second option is that management can add a toll-operated machine which will cost GH¢3,000 and this amount is a free gift from the Minister. This option will reduce the arrival rate to 35 motorists every 2 hours. However, management will have to pay the operator who will man the toll-operated machine a monthly salary of GH¢550. Whichever option management adopts; they avoid lost sales of GH¢1,200.00 per month for every minute that average waiting time is reduced. Advise management which option it must adopt?
I could advise the management to adopt the first option since it will be cheaper compared to the second option.
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