Assume that all customer groups eat both dinner and dessert. Estimate the maximum number of customer groups per hour the restaurant can serve (capacity rate) by applying Little’s Law. At what rate (dollars per hour) is profit generated by the restaurant if it operates at capacity rate?
Hilltop Restaurant is located in Dempsey Hill. The restaurant has a capacity of 35 tables to serve customers. When doing its capacity planning and evaluating operational performance, the restaurant adopts the concept of “customer group” and uses it as unit of measurement to measure the workload in the service process.
A customer group is a group of one or more people who arrive, get seated at a table, eat and depart. On average, a customer group takes 70 minutes to eat dinner, and then another 25 minutes to eat dessert. On average, a customer group generates a profit of $100 on dinner, and $30 on dessert.
(a) Assume that all customer groups eat both dinner and dessert. Estimate the maximum number of customer groups per hour the restaurant can serve (capacity rate) by applying Little’s Law. At what rate (dollars per hour) is profit generated by the restaurant if it operates at capacity rate?
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