What is the average throughput time for customer

Assignment Help Operation Management

Reference no: EM132305599

Jon has a new business for Coffee Making. Step 1 is automatic coffee beans grinding, which always takes exactly 150 seconds to process. After the Step-1, there is a Step-2 where grinded coffee beans are put in machine to extract coffee by drip process and it takes 200 seconds on average. About 50% of the customers chose the “special” Step-3 (after step-1 and 2), which involves putting cream, sugar, frothing and it, takes 5mins to complete. The Step-2 and Step-3 are performed by one person working on each station. John observes that for both these processes the service times are exponentially distributed (i.e. the standard deviation is the same as the mean). Weekdays demand is 10 customers arriving per hour, while weekends see about 16 customers coming in per hour. Assume that the arrivals are Poisson distributed for all stations (i.e. the standard deviation of inter-arrival times is the same as the mean).

a. What is the average throughput time (TPT) for customer during weekend?

b. Jon plans to start running Weekend promotion at discounted price. This is expected to boost step-3 by 50%, so that the total fraction of the customer base choosing it will be 75%. Assume demand remains the same; what will be the average TPT during weekends when the promotion is offered?

Reference no: EM132305599

Questions Cloud

Improving rewards plan towards employee and organisation : Describe Qusai-market in the US Healthcare System. What are the 5 objectives in improving rewards plan towards employee and organisation?

Critical thinking is the opposite of creative thinking : “Critical thinking is the opposite of creative thinking.” Do you agree? Provide examples of why you agree or disagree 200words

Confident in evaluating a property potential revenue stream : Are there potential gaps in the SWOT analysis that require further research to feel confident in evaluating a property's potential revenue stream?

History of the samsung environmental responsibility : Explain the Brief history of the Samsung’s Environmental Responsibility

What is the average throughput time for customer : What is the average throughput time (TPT) for customer during weekend?

Hangar space to security inspections and operations : Air cargo operations are also handled differently, from hangar space to security inspections and operations.

Expanding in-home daycare to multiple facilities : I need help with doing a 60-second elevator pitch for expanding a daycare. I am expanding an in-home daycare to multiple facilities

Completing capstone project proposal : The following are the guidelines for completing your Capstone Project Proposal:

Examples from the contemporary environment : Support your comments by discussing one or more examples from the contemporary environment that parallel your experience.

User Account

All Pages