Final answer:
A manager can trade off waiting time and cost by adjusting the number of servers. Balancing reduced waiting times with increased labor costs is crucial for customer satisfaction and profitability. Managers must find an equilibrium to sustain service quality while managing expenses.
Step-by-step explanation:
With more servers, a manager can effectively trade off waiting time and cost. In a business, especially in the service sector, managing the number of servers or staff can be a critical decision that affects both customer satisfaction and operational costs. Increasing the number of servers typically reduces the waiting time for customers, which can enhance the customer experience and potentially improve the overall quality of service. However, this comes at the trade-off of increased labor costs, as more employees require higher expenditure in terms of salaries and other associated expenses.
It is important for a manager to find the right balance between reducing waiting times to improve customer service and managing costs effectively. This balance is essential for maintaining the profitability and sustainability of the business. Therefore, managers often analyze customer flow patterns and demand to schedule the right amount of staff and minimize both waiting times and labor costs.