Rivers_Week 3

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University of Phoenix *

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OPS/574

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Industrial Engineering

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Jan 9, 2024

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docx

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4

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1 Running head: PRE-PROCESSING SYSTEM Pre-processing System Student Name Phoenix University OPS/574 Creating Value Through Operations Professor Name September 12, 2023
2 Running head: PRE-PROCESSING SYSTEM Jack’s, a fast-food restaurant chain, manages peak demand by utilizing the pre-processing strategy. According to the text, a pre-processing strategy is the act of “reducing the amount of work needed to process a customer during the peak time period by moving some of the work to an off-peak time” (Cachon and Terwiesch, 2023, p. 539). This process allows for less work all while increasing the capacity to serve customers (Cachon and Terwiesch, 2023). Jack’s does this by meal prepping. Biscuits are made from 3 a.m. until 9 a.m. for the entire day, which prevents customers from having to wait on biscuits for their meals. The restaurant also pre-preps salads during the morning rush to account for the lunch rush as well as the dinner rush. The strength of the system is that it allows customers to receive full service at a faster rate than restaurants that do not utilize the pre-processing strategy. Although rare, once all the biscuits have been used customers are told that they cannot have a biscuit but can substitute for a bun. The latter is the biggest weakness that I have observed at Jack’s. An additional service system that Jack’s utilizes is the off-peak discount. Cachon and Terwiesch (2023) note that this takes place when companies want to reduce demand without reducing revenue. Jack’s has half-price sausage gravy and biscuits until 6 a.m. in an attempt to avoid the 6 a.m. to 9 a.m. rush. While this method allows for the morning rush to be a bit easier, it also affects the number of biscuits that have to be made. This factor is one that fluctuates because sometimes it is a pro and other times it isn’t. For example, if the rush shifts to account for receiving the discount, biscuits are not allowed to overflow for the remainder of the day, and by the time the rush stops the person in charge of baking biscuits may have to go on break or potentially leave for the day. Conversely, when 50% of the customers changed their time of visit to an earlier one, the person in charge of baking biscuits was able to make more than normal and
3 Running head: PRE-PROCESSING SYSTEM increase the revenue because they were able to sell more of them at a discounted rate to prevent from having increased waste at the end of the night.
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4 Running head: PRE-PROCESSING SYSTEM References Cachon, G., & Terwiesch, C. (2023). Operations management . McGraw Hill Education.