What is the implied service rate per service counter employee at an airport automobile rental counter if customer demand is 36 customers per hour, two service counter employees are on duty, and the labor utilization is 75 percent
A) 18 customers per hour
B) 26 customers per hour
C) 20 customers per hour
D) 24 customers per hour

Question

Quizplus · Accepted Answer

The labor utilization rate is 75%, meaning that the employees are working at 75% of their capacity. If the demand is 36 customers per hour and there are two employees, the total service rate needed is 36 customers/hour. Therefore, the total capacity is 36 / 0.75 = 48 customers/hour. With two employees, each employee's service rate is 48 / 2 = 24 customers per hour.

What Is the Implied Service Rate Per Service Counter Employee