OPERATIONS MANAGEMENT LL PACKAGE
OPERATIONS MANAGEMENT LL PACKAGE
11th Edition
ISBN: 9781323592632
Author: KRAJEWSKI
Publisher: Pearson Custom Publishing
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Chapter 4, Problem 4P

Food Goblin Supermarkets use both cashiers and baggers to serve customers at check out. During the first 6 hours of each workday (Monday-Friday), 4 cashiers and 2 baggers serve approximately 20 customers per hour. A cashier and a bagger who require approximately 5 minutes at checkout and 5 minutes at bagging serve each customer.

  1. Calculate the utilization of both cashiers and baggers.
  2. Assume that both baggers and cashiers are cross trained to perform both activities so that they can serve customers independently. Customers are now both checked and their groceries bagged by one individual. Further, assume that it takes 12 minutes for one individual to both cash out and bag each customer’s groceries. Calculate the utilization of this new group of 6 cross-trained employees.

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Food Goblin Supermarkets use both cashiers and baggers to serve customers at check out. During the first 6 hours of each workday (Monday–Friday), 4 cashiers and 2 baggers serve approximately 20 customers per hour. A cashier and a bagger who require approximately 5 minutes at checkout and 5 minutes at bagging serve each customer. a. Calculate the utilization of both cashiers and baggers. b. Assume that both baggers and cashiers are cross-trained to perform both activities so that they can serve customers independently. Customers are now both checked and their groceries bagged by one individual. Further, assume that it takes 12 minutes for one individual to both cash out and bag each customer’s groceries. Calculate the utilization of this new group of 6 cross-trained employees.
Food Goblin Supermarkets use both cashiers and baggers to serve customers at check out. During the peak hours, 8 cashiers and 6 baggers serve approximately 75 customers per hour. On average, a cashier spends 6 minutes at checkout and a bagger spends 4 minutes at bagging to serve a customer. Calculate the utilization of cashiers and their capacity cushion during a peak hour. Calculate the utilization of baggers and their capacity cushion during a peak hour. Calculate the overall average utilization of cashiers and baggers during a peak hour.
opOil, a refiner in Indiana, serves three customers near Nashville, Tennessee and maintains consignment inventory (owned by TopOil) at each location. Currently, TopOil uses TL transportation to deliver separately to each customer. Each truck costs $800 plus $250 per stop.  Thus delivering to each customer separately costs $1050 per truck. TopOil is considering aggregating deliveries to Nashville on a single truck. Demand at the large customer is 60 tons per year, demand at the medium customer is 24 tons per year, and demand at the small customer is 8 tons per year. Product cost for TopOil is $10,000 per ton and they are using a holding cost of 25 percent. Truck capacity is 12 tons. What is the optimal order quantity to each customer assuming TopOil develops a tailored aggregation policy?

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