Strategy Sample Test

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Question 1 The management at BuyRite grocery stores wishes to estimate the amount of time that customers are spending, on average, in its stores and in a checkout line. The most obvious approach for determining this information is to simply record when a customer enters and exits the store. However, it is difficult to track the entering and exiting times of specific customers. We will look at the problem using an alternative approach. Over the past two weeks, the following data have been collected at BuyRite’s newest store during busy hours (this BuyRite is rather large and typically has 7 open checkout lines). For simplicity, let us assume that the overall capacity at checkout lines is higher than the arrival rate of customers into the…show more content…
(b) A direct-sale store takes both internet and phone orders. Internet orders come in every 15 minutes and phone orders arrive at a rate of 5 orders/hour. Regardless of the type of the orders, the packed merchandise (one order) is put on the truck and ready to be shipped in 7 hours. On average how many orders are in the store? How many of them are internet orders? Question 3 A donut store is open 8 hours a day and sells two types of donuts – blueberry cake donut and chocolate frosted donut. On average the demand is 80 donuts per day for EACH type. The store has only one machine which makes both types, and once it starts, it produces one donut every 2 minutes for either type. The production alternates between the two types, i.e., a batch of one type is followed by a batch of the other. The setup time is 20 minutes for either type. Assume the same batch size all the time for both types. (a) If the batch size is 10 donuts per batch, what is the capacity per day for each type of donut? (b) What is the minimal batch size in order to satisfy demand for both types? Question 4 Consider the following assembly line: Department Processing Capacity Yield (units/day) A 2200 80% B 1600 90% C 1800 100% D 1000 80% E 800 100% Three units of output from Department C and one unit from Department D are used to assemble one unit of final product in Department E. Suppose
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