Managing Services

In St Luke’s hospital, there are four lifts for visitors. While the average capacity of the four lifts is sufficient to transport the visitors during the day, visitors have to wait about 3 minutes on average to get in the lift. Installing a fifth lift would reduce the waiting time to 1 minute 30 seconds. Knowing that the yearly depreciation and operational costs of a fifth lift is a30,000 and knowing that there are about 70,000 visitors a year, would you recommend that the hospital install a fifth lift?

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