What is the capacity of the system in the scenario below?

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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Question 1

What is the capacity of the system in the scenario below?

Scenario:

A large, high volume warehouse-style discount grocery & retail operation receives pallets of wholesale goods to stock their shelves.  Each day the Shipping/Receiving (S/R) manager verifies & logs receipt of pallets which takes about 30 minutes (0.5 hours per pallet, hpp).  The S/R manager then sends the received pallets to the staging area for pricing.  It takes just about 75 minutes (1.25 hours) to price a pallet of goods; consequently, there are two “pricers”.  The priced items are then place on the shelves throughout the warehouse by nine “stockers” at an average rate of about a pallet every 90 minutes (1.5 hours) per stocker.  At the same time the stockers are placing items on shelves, an employee called a “shelf-spotter”  rotates stock forward in the shelving to make room for the stockers which takes about 12 minutes (0.20 hours) per pallet-quantity of items.  At the end of each day an analyst performs an operation called “cycle-counting” to reconcile the quantity of shelved goods with a computer report. The analyst cycle-counts for 15 minutes (0.25 hours) for each pallet-count of goods shelved.

a. 1.6 pallets per hour
b. 10 pallets per hour
c. 6 pallets per hour
d. 2 pallets per hour
e. Impossible to determine
Stocking
9 persons
1. 5 hpp
S/R
1 person
0.5 hrs/pallet
(hpp)
Pricing
2 persons
1.25 hpp
Cycle
Count
1 person
0.25 hpp
Spotting
1 persons
0.2 hpp
Transcribed Image Text:Stocking 9 persons 1. 5 hpp S/R 1 person 0.5 hrs/pallet (hpp) Pricing 2 persons 1.25 hpp Cycle Count 1 person 0.25 hpp Spotting 1 persons 0.2 hpp
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ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing