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What is the implied service rate at a bank teller window if customer demand is 27 customers per hour; four bank tellers are on duty; and their labor utilization is 90 percent?

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Answer:

Implied service rate is 7.5 customers per hour

Explanation:

The percentage of time a person spends to do a billable work. It is the time that a firm consume to serve the customers.

Utilization rate = Demand Rate / ( Service rate x Number of servers )

90% = 27 / ( Service rate x 4 )

0.9 = 027 / ( Service rate x 4 )

Service rate x 4 = 27 / 0.9

Service rate x 4 = 30

Service rate = 30 / 4

Service rate = 7.5 customers per hour

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