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I-mart is a discount optical shop that can fill most prescription orders in around 1 hour. The management is analyzing the processes at the store. There currently is one person assigned to each task below. The optometrist assigned to task B takes an hour off for lunch and the other employees work the entire day.
Task Time
A) Greet/register the patient 2 minutes/patient
B) Optometrist conducts eye exam 25 minutes/patient
C) Frame/lenses selection 20 minutes/patient
D) Glasses made (process can run 6 pairs of glasses at the same time) 60 minutes/patient
E) Final fi tting 5 minutes/patient
For a typical 10-hour retail day (10 a.m.-8 p.m.), the manager would like to calculate the following:
a) What is the current maximum output of the process per day (assuming every patient requires glasses)?
b) If another person were added, where would be the logical place?
c) What effect would a mail order lab (where the glasses are made off-site and returned in 5-7 days) have on the process?
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Item Cost - $7.00 Order Cost - $283.00 Annual Hold - 32% of item cost Annual Demand - 22,100 Average Demand - 442 per week Standard deviation of weekly demand 20 per week lead time
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