Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Operation Management Expert

A Supersonic Burger fast-food franchise is considering adding drive-through service. Data collected at other Supersonic drive drive-throughs in the area indicate that customer arrivals follow a Poisson probability distribution, with a mean arrival rate of 24 cars per hour, and that service times follow an exponential probability distribution. In the proposed drive-through system, arriving customers will place orders at an intercom station at the back of the parking lot and then drive to the service window to pay for and receive their orders. The following three service alternatives, which are in use at other Supersonic Burgers with drive-through service, are being considered: 1. A single-channel operation in which one employee fills the order and takes the money from the customer. The average service time for this alternative is 2 minutes. 2. A single-channel operation in which one employee fills the order while a second employee takes the money from the customer. The average service time for this alternative is 1.25 minutes. 3. A two-channel operation with two service windows and two employees. The employee at each service window fills the order and takes the money from the customer. The average service time for this alternative is 2 minutes. (a) For each alternative determine the probability that an arriving car will have to wait for service. (b) For each alternative determine the average number of cars waiting for service. (c) For each alternative determine the average time that a car spends in the drive-through system. (d) For each alternative determine the average time that a car spends waiting to place an order. (e) Because waiting time is costly in the fast-food business, Supersonic's management assigns a cost of $25 per hour to customer waiting time. From an expected-cost perspective, which of the three alternatives described above would you recommend if Supersonic drivethrough employees are paid $6.50 per hour and the operating cost per channel (equipment, space, etc) is $20 per hour? Explain your answer.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M91639261

Have any Question?


Related Questions in Operation Management

An analyst is prepared to perform 100 observations for the

An analyst is prepared to perform 100 observations for the setup for operations on a particular workstation. The preliminary estimate is an average of 1.2 hours out from a typical 8 hour workday. The desired confidence l ...

Assignment question 1 the case identifies several aspects

Assignment Question : 1. The case identifies several aspects of the Nissan response that were particularly beneficial. Expand on the points made in the case to identify the potential costs and benefits of these actions. ...

Module overviewmostly consumers benefit from competition

Module Overview Mostly consumers benefit from competition through greater choices and lower prices. However, not all markets are equally competitive. Consider the airline industry. Would prices of commercial aircraft-and ...

Over the course of the year following dan pricersquos april

Over the course of the year following Dan Price’s April 2015 announcement, he was embroiled in a legal battle with his brother Lucas, co-owner of Gravity Payments. Lucas Price sued Dan, claiming that his brother had viol ...

Project managemnet decisionsa new ceo within two weeks of

Project managemnet decisions A New CEO Within two weeks of accepting the position of CEO of Providian Trust Company, Stephen Walsh, a lawyer by training, faced an unusual corporate conflict and he would have to play the ...

Prevention and resolution of customer service conflict is

Prevention and resolution of customer service conflict is important to the overall impression an organization leaves with both customers and employees. Post about a common conflict scenario you have encountered or experi ...

Attitude is an easy area to develop but difficult to change

Attitude is an easy area to develop but difficult to change. Once an attitude has been formed (about a brand) it is costly to change. Identify one brand that has suffered a set-back or controversy. Answer in detail the f ...

1 explain how the constitutive view can be seen as applying

1. Explain how the constitutive view can be seen as applying to Critical and Feminist approaches to organizations. 2. Give an example of Gender bias in an organization with which you are familiar. 3. In a referenced essa ...

Read the following case study the offer purchase of a

Read the following case study : THE OFFER: PURCHASE OF A PRIVATE PRACTICE: Dr. Daniel Davidson, a neurosurgeon, has been approached by the administrator of Harbor View Hospital to explore his level of interest in joining ...

For the next round of submission be prepared to provide a

For the next round of submission, be prepared to provide a case study of a defect in pavement construction. Furnish a minimum of a 3-page narrative (excluding supplemental pages such as cover page, table of contents, ref ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As