Question

What is the implied hourly service rate at an airport automobile rental counter if the customer demand is 36 customers per hour, two service-counter employees are on duty, and their labor utilization is 90%

Answer 1

20 customers per hour

Step-by-step explanation:

Utilization = Demand rate per hour / Number of employee * Service rate

Utilization = 90% = 0.90

Number of Counter employee = 2

Demand rate = 36 per hour

Hence, 0.90 = 36 / 2 * Service rate

0.90 = 18 / Service rate

Service rate * 0.90 = 18

Service rate = 18 / 0.90

Service rate = 20 customers per hour