A local restaurant is concerned about their ability to provide quality service as they continue to grow and attract more customers. They have collected data from Friday and Saturday nights, their busiest time of the week. During these time periods, about 75 customers arrive per hour for service. Given the number of tables and chairs, and the typical time it takes to serve a customer, they figure they can serve, on average, about 100 customers per hour. The owners now anticipate that in one year, their demand will double from the current demand of 75 arrivals per hour, as long as they can provide good service to their customers. How much will they have to increase their service capacity to stay out of the critical zone? That is, how many customers should they be able to plan for? Keep in mind that service capacity utilization rate = arrivals rate / service rate.

A local restaurant is concerned about their ability to provide quality service as they continue to grow and attract more customers. They have collected data from Friday and Saturday nights, their busiest time of the week. During these time periods, about 75 customers arrive per hour for service. Given the number of tables and chairs, and the typical time it takes to serve a customer, they figure they can serve, on average, about 100 customers per hour. The owners now anticipate that in one year, their demand will double from the current demand of 75 arrivals per hour, as long as they can provide good service to their customers. How much will they have to increase their service capacity to stay out of the critical zone? That is, how many customers should they be able to plan for? Keep in mind that service capacity utilization rate = arrivals rate / service rate.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter4: Linear Programming Models

Section4.8: Data Envelopment Analysis (dea)

Problem 42P

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Owners of a local restaurant are concerned about their ability to provide quality service as they continue to grow and attract more customers. They have collected data from Friday and Saturday nights, their busiest times of the week. During these time periods about 75 customers arrive per hour for service. Given the number of tables and chairs, and the typical time it takes to serve a customer, the owners estimate they can serve on average about 100 customers per hour. During these nights, are they in the zone of service, the critical zone, or the zone of nonservice?
Owners of a local restaurant are concerned about their ability to provide quality service as they continue to grow and attract more customers. They have collected data from Friday and Saturday nights, their busiest times of the week. During these time periods about 75 customers arrive per hour for service. Given number of tables and chairs, and the typical time it takes to serve a customer, they the owners estimate they can serve on average about 100 customers per hour. Owners of the restaurant anticipates that, in one year their demand will double as long as they can provide good service to their customers. How much will they have to increase their service capacity to in order to stay out of the critical zone? (Roundup your answer to the next whole number.)
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Terex Corporation is a global manufacturer of aerial work platforms and materials processingmachinery. They design, build and support products such as large lifting equipment used inconstruction. The company makes most pieces to order and customizes them to meet customers’unique preferences.Terex maintained a manual system for yard management at their transfer centre in Washingtonthat is always full of lifting equipment, which generated excessive costs for what should have beena relatively simple process of locating customers’ units to prepare them for delivery. A wallboardand sticker system was a low-tech solution for identifying equipment items in the yard at Terex.While inexpensive in itself, the solution cost around six minutes every time an employee had tolocate a unit in the yard. It also required a considerable number of hours to be spent each monthtaking physical inventories. After a successful pilot, the company approved a new solution, replacingstickers, yard maps, and…
Terex Corporation is a global manufacturer of aerial work platforms and materials processingmachinery. They design, build and support products such as large lifting equipment used inconstruction. The company makes most pieces to order and customizes them to meet customers’unique preferences.Terex maintained a manual system for yard management at their transfer centre in Washingtonthat is always full of lifting equipment, which generated excessive costs for what should have beena relatively simple process of locating customers’ units to prepare them for delivery. A wallboardand sticker system was a low-tech solution for identifying equipment items in the yard at Terex.While inexpensive in itself, the solution cost around six minutes every time an employee had tolocate a unit in the yard. It also required a considerable number of hours to be spent each monthtaking physical inventories. After a successful pilot, the company approved a new solution, replacingstickers, yard maps, and…
Hilltop Restaurant is located in Dempsey Hill. The restaurant has a capacity of 35 tables to serve customers. When doing its capacity planning and evaluating operational performance, the restaurant adopts the concept of “customer group” and uses it as unit of measurement to measure the workload in the service process. A customer group is a group of one or more people who arrive, get seated at a table, eat and depart. On average, a customer group takes 70 minutes to eat dinner, and then another 25 minutes to eat dessert. On average, a customer group generates a profit of $100 on dinner, and $30 on dessert. Now assume that Hilltop leases new space to open a “dessert bar” next door, and has opened up the wall between the two units to allow inside access from the restaurant to the dessert bar. The dessert bar can accommodate 15 tables. With this change, a customer group arrives and is seated at a table in Hilltop restaurant as usual. However, when the customer group finishes eating dinner,…
Hilltop Restaurant is located in Dempsey Hill. The restaurant has a capacity of 35 tables to serve customers. When doing its capacity planning and evaluating operational performance, the restaurant adopts the concept of “customer group” and uses it as unit of measurement to measure the workload in the service process. A customer group is a group of one or more people who arrive, get seated at a table, eat and depart. On average, a customer group takes 70 minutes to eat dinner, and then another 25 minutes to eat dessert. On average, a customer group generates a profit of $100 on dinner, and $30 on dessert. (a) Assume that all customer groups eat both dinner and dessert. Estimate the maximum number of customer groups per hour the restaurant can serve (capacity rate) by applying Little’s Law. At what rate (dollars per hour) is profit generated by the restaurant if it operates at capacity rate?