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Question: Comfy Shoes Inc. builds shoes tailored to meet each individual customer's needs. Customers who visit the shop in downtown Boulder can choose one or more of the following custom-tailoring services. Customers receive their shoes in the mail within a week of their initial visit.

Service Description Processing time Resource used
A. Walking Basics Take measurements for basic walking shoes 12 min Attendant 1
B. Walking Plus Choose specific design (material, color) 12 min Attendant 2
C. Running Basics Take measurements for tailor made running shoes 10 min Attendant 3
D. Running Advanced Consult physical therapist and obtain precise needs for running shoes. Also, choose specific design 40 min Attendant 4

The company offers the following packages to their customers:

a. Package 1: Includes only Walking Basics (Service A)

b. Package 2: Includes Walking Basics and Walking Plus (Services A and B)

c. Package 3: Walking Basic, Walking Plus, and Running Basics (Services A, B, and C)

d. Package 4: All four services (A, B, C, and D)

Customers of Comfy Shoes visit the store at a rate of 40 customers per day. Of these, 35% buy Package 1, 20% buy Package 2, 10% buy Package 3, and 35% buy Package 4. The store operates 12 hours a day.

A) What is the implied utilization of each type of attendant (Attendant 1, Attendant 2, etc.)?

B) Which type of attendant (Attendant 1, Attendant 2, etc.) is the bottleneck?

Marketing Management, Management Studies

  • Category:- Marketing Management
  • Reference No.:- M92683032

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