Waiting Line and Queuing Theory Models

Compute the projected profit for the order quantities suggested by the management team under three scenarios: worst case in which sales = 10,000 units, most likely case in which sales = 20,000 units, and best case in which sales = 30,000 units.

14) Refer to the table. What is the average time a customer spends waiting in line and being served?

The grocery industry has a relatively high market commonality; a lot of grocery stores are somewhat related in terms of technologies used, labor force and the products or services offered in the stores. Differentiation with other competitors is key for survival in this highly competitive industry.

1. The grocery industry is a commoditized industry, which makes it difficult for grocers to sustain through differentiation. Buyer power is high and thus, cost leadership and operational efficiencies are critical. There is fierce competition amongst various grocery stores, with the main players such as Loblaw and A&P holding multi-banner stores in various market segments. Traditional grocery stores also lose some of their market share to drug stores, convenience stores and other retailers who have entered the industry. Threat of substitutes from fast-food and take- away outlets is not as prevalent, since many grocery stores have started stocking ready-to-eat meals and have deli services available for consumers. Competitive

Name: Amber Smith CAUTION: See "round" rules in Excel Instructions before calculating OT for slaried employees. Enter the appropriate numbers/formulas in the shaded (gray) cells. An asterisk (*) will appear to the right of an incorrect answer. For a breakdown of the solution by chapter, see the worksheet tabs labeled CPP 2 through 6 representing the solutions for chapters 2-6. Continuing Payroll Problem-B

Ryerson Automobile Insurance Company wants to estimate the mean time it takes for workers who are employed in downtown Toronto to get to work. A sample of 10 workers reveals the following number of minutes traveled.

1. The local Mastermind store sells innovative educational toys. Part of their service is giving advice to customers about the best toys for a particular age group, which requires having more customer service representatives in the store. During the month long Christmas buying season, it makes half of its $500,000 yearly sales. Its contribution margin on average is 40% and its fixed costs for the year are about $150,000. The owner believes that she could make even higher sales, if she had more customer service representatives on the floor during the peak season. She plans on hiring four more people for 200 hours each at $20 per hour. How much additional revenue does she have earn to the nearest dollar

Customers must use the internet to fill out an online form to address their complaints or service needs. These forms are processed by employees in your department. Currently the turnaround time on any given form is between four to eight hours. This creates a number of other customer complaints. Project Call Center is designed to reduce this turnaround time by 75% by creating and staffing a call center in Tampa. Building acquisition, building renovations, building fit out, IT system upgrades, and hiring and training of staff are estimated to cost $8.5 million dollars. This $8.5 million dollars can be paid evenly in any two quarters in the next year. In addition, seven new employees will need to be hired at $40,000 burdened labor costs per year to staff the call center. Management of this project could easily be done with the current in-house staff. Most of the work of this project would be outsourced and will have minimal impact on day-to-operations.

A. The simulated function given in the Excel spreadsheet “Hamptonshire Express: Problem_#1” allows the user to find the optimal quantity of newspapers to be stocked at the newly formed Hamptonshire Express Daily Newspaper. Anna Sheen estimated the daily demand of newspapers to be on a normal standard distribution; stating that daily demand will have a mean of 500 newspapers per day with a standard deviation of 100 newspapers per day. Using the function provided, the optimal stocking quantity, which maximizes expected profit, is determined to be approximately 584 newspapers. If 584 newspapers were to be ordered, Hamptonshire Express will net an

My informant explained an observation she had made about the flow of the customers in the coffee house. Due to the location, the flow of customers corresponds to the arrival of public transportation, trains and buses. When a train arrives and customers get off the train, many wait to transfer to a bus close to the entrance of the coffee house. During that time, there is usually an influx of customers in the restaurant. Sometimes the line to order extends to the entrance door, during this time the customers wait time to receive their order is much longer than the wait to place an order. My informant explained that the extended wait time for an order was due to a limited number of staff working in the kitchen.

Using the intercompany-billing rate per hour of $400 and the intercompany demand of 205 hours we calculate revenue and expenses.

The first channel is associated with retail grocery stores and supermarkets. The second channel is

30. The manager of the local National Video Store sells videocassette recorders at discount prices. If the store does not have a video recorder in stock when a customer wants to buy one, it will lose the sale because the customer will purchase a recorder from one of the many local competitors. The problem is that the cost of renting warehouse space to keep enough recorders in inventory to meet all demand is excessively high. The manager has determined that if 90% of customer demand for recorders can be met, then the combined cost of lost sales and inventory will be minimized. The manager has estimated that monthly demand for recorders is normally distributed, with a mean of 180 recorders and a standard deviation of 60. Determine the number of recorders the manager should order each month to meet 90% of customer demand.

The grocery store industry is a retail business that offers food and other products to

Xpress Laundry Service is a full service laundry service designed with the college student’s budget in mind. Basically, Xpress picks up the students’ laundry from their residence hall, washes and folds the laundry using only Tide premium detergents, and drops the laundry off within 48 hours. This service is provided at the low price of just $8 per wash which is defined by the amount of laundry that the customer can fit into an Xpress Laundry Bag (about 25lbs.) Currently Xpress’ clientele is continuing to grow each week. This growth is due mostly to