)A company that operates fast food hamburger restaurant is evaluating the service at its facility. The customers have been observed to arrive at the drive-through window according at an average rate of 30 customers per hour.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question

5)A company that operates fast food hamburger restaurant is evaluating the service at its facility. The customers have been observed to arrive at the drive-through window according at an average rate of 30 customers per hour. The restaurant believes the arrival rate conforms to a Poisson distribution. Evaluating the current service rate, the restaurant calculates that the drive-through is capable of processing 40 customers per hour.

d. A vendor of specialized drive-through systems has 3 installations available. System A promises a service rate of 60 customers per hour, system B is more expensive but can process 75 customers per hour and system C requires a sizable investment and will be capable of processing 90 customers per hour. Which system should the restaurant implement?

e. The current facility limits the number of cars (customers) that can be in the drive-through to 5. More than 5 cars in line means customers have to wait on a public street, causing them to leave the restaurant. The restaurant wants to limit the chances of customers balking to less than 5%. How does this information affect the choice made in part (d)?

f. The cost of any of the vendor systems is large enough that it is possible to install a second drive-through system for a comparable cost. If a second drive-through is installed, it will be identical to the existing system and have the same performance (40 customers/hour). Can the two requirements (average time-in-system to 4 minutes or less and the probability of more than 5 cars waiting to less than 5%) be met by the two systems if the customer arrival rate increases to 50 customers/hour?

 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Process selection
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.