Cutey Barber Salon is a trendy barber salon that is located in a densely populated city called Maple. Demand for the services offered by the salon is fairly high. It offers services such as haircuts, hair styling, scalp massaging and conditioning treatment, straight razor and wet shave, beard sculpting, facials and hair colouring. In addition to these services provided, the salon sells premium hair products to customers. The salon has the ability to produce a maximum of 20,000 haircuts and hairstyling per year. Demand for haircuts and hairstyling over the last five years can be seen in the following table:- Year Demand for haircuts and hairstyling 2017 11,500 2018 12,200 2019 13,400 2020 14,000 2021 14,500 Although the business does not have a written vision and mission statement, it is clear in the minds of management what they want to achieve and what they would like to be in the future. Currently, customers can walk in at any time to be served. At times, customers have to wait in line for a long time. This is creating some challenges for the operations manager. He needs to overcome this challenge in order to utilize his resources more efficiently. Competition in the hair salon business is intensifying. New firms are rising up and existing firms are expanding their operations. Increasing competition is gradually eating away profit margins since costs are increasing and customers are demanding lower prices for services. Management has to find some efficient way to add value to their products and to overcome the competition. Question 1a. Use trend projection to forecast demand for haircuts and hairstyling for 2022 b, Calculate the utilisation rate at Cutey Barber Salon in 2021.
Cutey Barber Salon is a trendy barber salon that is located in a densely populated city called Maple.
Demand for the services offered by the salon is fairly high. It offers services such as haircuts, hair
styling, scalp massaging and conditioning treatment, straight razor and wet shave, beard sculpting,
facials and hair colouring. In addition to these services provided, the salon sells premium hair products
to customers. The salon has the ability to produce a maximum of 20,000 haircuts and hairstyling per
year. Demand for haircuts and hairstyling over the last five years can be seen in the following table:-
Year Demand for haircuts and hairstyling
2017 11,500
2018 12,200
2019 13,400
2020 14,000
2021 14,500
Although the business does not have a written vision and mission statement, it is clear in the minds of
management what they want to achieve and what they would like to be in the future.
Currently, customers can walk in at any time to be served. At times, customers have to wait in line for a
long time. This is creating some challenges for the operations manager. He needs to overcome this
challenge in order to utilize his resources more efficiently.
Competition in the hair salon business is intensifying. New firms are rising up and existing firms are
expanding their operations. Increasing competition is gradually eating away profit margins since costs
are increasing and customers are demanding lower prices for services. Management has to find some
efficient way to add value to their products and to overcome the competition.
Question
1a. Use trend projection to
b, Calculate the utilisation rate at Cutey Barber Salon in 2021.
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