valuationbreak evenprofitcontributionforecastshiftqueuingbusiness analysis
accountbasbudgetBAS-I.Cshare valueshort salesinvestment
site mapform1
Browse All Question and Answer Items
Items selected where Item is 2058252
Questions & Answers
Q: Could you please elaborate on the definition of Cost of Waiting, as Cost per Service Point is different (and a more straightforward costing exercise).
A: Customer waiting cost is an estimate of the lost customer value as waiting time increases ie unsatisfied customers that do not return due to excessive waiting time, this indicates the lost future profit. An example is provided in the instruction sheet. Cost per Service Point is the staffing cost and any asset/delivery cost per service point ie how much it costs to provide the service point. If the model was simply optimised for minimum service point cost an unacceptable waiting time would be introduced and customers lost. By considering the cost of waiting this can be allowed for.
Question and Answer Item 2058252 - Browse All Question and Answer Items