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Eric owns a small car wash business. He follows a fairly simple process to wash the cars. Answer the following question about his process. Assume that the capacity of his equipment is 4 cars at a time and that he starts with a single worker. A. if customers arrived every 8 minutes and there is only 1 car per customer order, how many cars can Eric finish (sell) per 6 hour shift? Eric circle time is 8 minutes and the equipment time is 16 minutes A. How long does the entire system takes to complete one car B. What is the utilization of a single worker will be? What will the utilization of the equipment be? C. if each car is done for $15 and the cost of input is $5 what amount of profit can Eric make per hour? What would the value of a second be? What would the utilization be of the workers if a second worker is hired? D. Evaluate the value of a reduction in the price of a car wash to $10 if that would result in an average of 1 customer every 6 minutes. Assume that there are 2 workers from the end of part C.

Operation Management, Management Studies

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