The owner of a fast-food franchise has exclusive rights to operate in a medium-sized metropolitan area. The owner currently has a single outlet open, which has proved to be very popular and there are often waiting lines for customers. The owner is therefore considering opening one or more outlets in the area. What are the main key factors that the owner should investigate before making a final decision?
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The owner of a fast-food franchise has exclusive rights to operate in a medium-sized metropolitan area. The owner currently has a single outlet open, which has proved to be very popular and there are often waiting lines for customers. The owner is therefore considering opening one or more outlets in the area. What are the main key factors that the owner should investigate before making a final decision?
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- Southwestern University (SWU), located in the small town of Stephenville, Texas is experiencing increased interest in its football program now that a big-name coach has been hired. The increase in season ticket sales for the upcoming season means additional revenues, but it also means increased complaints due to the traffic problems associated with the football games. When a new stadium is built, this will only get worse. Marty Starr, SWU's president has asked the University Planning Committee to look into this problem. Based on traffic projections, Dr. Starr would like to have sufficient capacity so that 35,000 cars per hour could travel from the stadium to the interstate highway To alleviate the anticipated traffic problems, some of the current streets leading from the university to the interstate highway are being considered for widening to increase the capacity. The current street capacities with the number of cars (in 1.000s) per hour are shown in Figure 11.34 Since the major…High-Low Method for a Service Company Boston Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by Boston Railroad is a measure of railroad operating activity, termed “gross-ton miles,” which is the total number of tons multiplied by the miles moved. Transportation Costs Gross-Ton Miles January $1,245,000 332,000 February 1,388,100 371,000 March 981,000 240,000 April 1,330,800 359,000 May 1,116,200 289,000 June 1,431,000 390,000 Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (If required, round to two decimal places.) $fill in the blank 1 per gross-ton mile Total fixed cost $fill in the blank 2The County Transportation Department needs to determine usage factors by day of the week for a popular toll bridge connecting different parts of the city. In the current study, they are considering only working days. Suppose that the numbers of cars using the bridge each working day over the past four weeks were (in thousands of cars) Find the seasonal factors corresponding to daily usage of the bridge.
- The City of High Point is buying new school buses for the local school system. High Point has found two models of school buses that it is interested in. Eagle Mover costs $80,000 to buy and uses diesel fuel, with an average fuel efficiency of 10 miles per gallon. Eagle Mover has an operating cost of $.28 per mile. Yellow Transport, a hybrid bus, costs $105,000 to buy and uses diesel fuel and battery power, getting an average of 22 miles per gallon. Yellow Transport has an operating cost of $.32 per mile. The distance traveled annually is determined to be 25,000 miles, with the expected life of either bus to be 10 years. The average diesel price is $3.50 per gallon.Willow Brook National Bank operates a drive-up teller window that allows customers to complete bank transactions without getting out of their cars. On weekday mornings, arrivals to the drive-up teller window occur at random. Assume that Poisson probability distribution with an arrival rate of 24 customers per hour or 0.4 customer per minute can be used to describe the arrival pattern. Assume further that the service times for the drive-up teller follow an exponential probability distribution with a service rate of 36 customers per hour, or 0.6 customer per minute. a. Use the single-channel drive-up bank teller operation to determine the probability that no customers are in the system b. Use the single-channel drive-up bank teller operation to determine the average number of customers waiting c. Use the single-channel drive-up bank teller operation to determine the average number of customers in the systemWillow Brook National Bank operates a drive-up teller window that allows customers to complete bank transactions without getting out of their cars. On weekday mornings, arrivals to the drive-up teller window occur at random. Assume that Poisson probability distribution with an arrival rate of 24 customers per hour or 0.4 customer per minute can be used to describe the arrival pattern. Assume further that the service times for the drive-up teller follow an exponential probability distribution with a service rate of 36 customers per hour, or 0.6 customer per minute. a. Use the single-channel drive-up bank teller operation to determine the average time a customer spends waiting b. Use the single-channel drive-up bank teller operation to determine the average time a customer spends in the system c. Use the single-channel drive-up bank teller operation to determine the probability that arriving customers will have to wait for service d.Use the single-channel drive-up bank teller operation…
- Willow Brook National Bank operates a drive-up teller window that allows customers to complete bank transactions without getting out of their cars. On weekday mornings, arrivals to the drive-up teller window occur at random. Assume that Poisson probability distribution with an arrival rate of 24 customers per hour or 0.4 customer per minute can be used to describe the arrival pattern. Assume further that the service times for the drive-up teller follow an exponential probability distribution with a service rate of 36 customers per hour, or 0.6 customer per minute. 1.) Use the single-channel drive-up bank teller operation to determine the probability of 4 customers in the system 2.) Use the single-channel drive-up bank teller operation to determine the average arrival time in minutes of customers 3.) Use the single-channel drive-up bank teller operation to determine the average service time in minutes of the drive-up tellerScenario: A city’s administration isn’t driven by the goal of maximizing revenues or profits but instead looks at improving the quality of life of its residents. Many American cities are confronted with high traffic and congestion. Finding parking spaces, whether in the street or a parking lot, can be time-consuming and contribute to congestion. Some cities have rolled out data-driven parking space management to reduce congestion and make traffic more fluid. You’re a data analyst working for a mid-size city that has anticipated significant increments in population and car traffic. The city is evaluating whether it makes sense to invest in infrastructure to count and report the number of parking spaces available at the different parking lots downtown. This data would be collected and processed in real-time, feeding an app that motorists can access to find parking space availability in different parking lots throughout the city. Instructions: Work with the provided Excel database.…Jobs arrive at Loaf Machine Shop. Assume the arrival rate is five jobs per hour. Service times (in minutes per job) do not follow the exponential probability distribution. Two proposed designs for Loaf Machine Shop operation are shown. Design Mean Standard Deviation A 6.0 3.0 B 6.25 0.6 What is the service rate in jobs per hour for each design? For the service rate in part (a), what design appears to provide the best or fastest service rate?
- A retail catalog operation employs a bank of six telephone operators who process orders using computer terminals. When a terminal breaks down, it must be disconnected and taken to a nearby electronic repair shop, where it is repaired. The mean time between terminal breakdowns is six working days, and the mean time required to repair a terminal is two working days (both exponentially distributed). As a result of lost sales, it costs the mail-order operation an estimated $50 per day in lost profits each day a terminal is out for repair. The company pays the electronics repair shop $3000 per year on a service agreement to repair the terminals. The company is considering the possibility of signing a new service agreement with another electronics repair shop that will provide subsitutute terminals while the broken ones are at the repair shop. However, the new service agreement would cost the mail-order operation $15,000 per year. Assuming that there are 250 working days in a year, determine…Trips Logistics, a third-party logistics firm that provides warehousing and other logistics services, is facing a decision regarding the amount of space to lease for the upcoming three-year period. The general manager has forecast that Trips Logistics will need to handle a demand of 100,000 units for each of the next three years. Historically, Trips Logistics has required 1,000 square feet of warehouse space for every 1,000 units of demand. For the purposes of this discussion, the only cost Trips Logistics faces is the cost for the warehouse. Trips Logistics receives revenue of $1.22 for each unit of demand. The general manager must decide whether to sign a three-year lease or obtain warehousing space on the spot market each year. The three-year lease will cost $1 per square foot per year, and the spot market rate is expected to be $1.20 per square foot per year for each of the three years. Trips Logistics has a discount rate of k = 0.1.Shauna’s Fast-food Service is considering operating a drive-up window food-service operation. Assume that customer arrivals follow a Poison probability distribution, with an arrival rate of 24 cars per hour and the service times follow an exponential probability distribution. Arriving customers place orders at an intercom station at the back of the parking lot and then drive to the service window to pay for and receive their orders. The following three service alternatives are being considered: A single-server operation in which one employee fills the order and takes the money from the customer. The average service time for this alternative is 2 minutes. A single-server operation in which one employee fills the order while a second employee takes the money from the customer. The average service time for this alternative is 1.25 minutes A two-server operation with two service windows and two employees. The employee stationed at each window fills the order and takes the money from…