The average number of customers waiting for a haircut

Assignment Help Operation Management
Reference no: EM13992188

Benny the Barber owns a barber shop with two-chairs (stations for two barbers). However, he is the only barber working there at this time. His customers are arriving at the rate of one every thirty minutes. The arrival rate distribution follows a Poisson distribution as Benny does not take appointments. On average, it takes Benny an average of 24 minutes to give a haircut and this service time follows an exponential distribution. Using this information, answer the following questions.

a) The average number of customers waiting for a haircut.

b) The average time a customer is in the shop.

c) Suppose Benny’s waiting area has only three chairs for waiting customers. What percent of the time will a customer arriving not be able to find a chair to sit in?

d) Benny is concerned about losing revenue and is considering adding another barber. He believes that for every hour a customer is in his shop either waiting for a haircut or having his haircut he loses $3 of revenue. If he hires the barber, he will pay him a salary of $10 per hour. Benny currently pays himself $15 for cutting hair. Answer the following questions for the two-chair operation. Assume that the arrival rate will not change and that the second barber will work at the same pace as Benny. Customers cannot ask for a specific barber but will take the first one available.

Based on the cost of the operation and using the information provided here, which operation (Benny or Benny combined with the second barber) would be the most cost effective? Provide the cost of operation of each scenario. Base your cost analysis only on the information provided here and ignore the time value of money.

Reference no: EM13992188

What is its multifactor productivity

Airphone, Inc., manufactures cellular telephones at a processing cost of $47 per unit. The company produces an average of 250 phones per week although there are 16% defective

Forecast values based on simple moving average method

While monitoring the forecast values based on simple moving average method (averaging period = 3), the tracking signals are consistently coming out as large positive numbers (

Backstreets make month in order for service to break even

The owner of backstreet’s Italian restaurant are considering starting a delivery service for pizza and their are other Italian dishes in the small college town where they are

What is the average multi-factor productivity for process

Operation management 11th edition Stevenson, William. solution for this problem; The weekly output of a production process is shown below, together with data for labor and mat

Discuss how changes in the demographic composition

Discuss how changes in the demographic composition of the U.S. workforce will affect the employment relationship from an employer’s perspective. What possible impact will thes

What environmental factors-internal and external

Environmental Factors. What environmental factors - internal and external - could impact the recruitment, selection, and retention of this position? How can you set your organ

Discuss how accounting-economic and social costs

Subject: Transportation. *Discuss how accounting, economic, and social costs can be used in transportation to mitigate risks associated with these costs. •Analyze how the comp

Five-forces model to evaluate the competitiveness

Use Porter’s Five-Forces Model to evaluate the competitiveness within the U.S. laptop computer market. Which of the Five-Forces is the strongest and most significant in this m


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd