Question 3.1                                                                                              KimMY's Convenience store has a variable demand. On a given day, demand ranges from 270 to 330 customers a day who average purchasing 5 items each. The average daily demand is 300 customers. The convenience store currently operates 12 hours a day. Each order takes approximately 2 minutes. Required What is the average customer waiting time, in minutes? What is the cycle time for an order? What is the waiting time if the average daily demand remains at 300 customers?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 5CE: Refer to Cornerstone Exercise 3.4 for data on Dohini Manufacturing Companys purchasing cost and...
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Question 3.1                                                                                             

KimMY's Convenience store has a variable demand. On a given day, demand ranges from 270 to 330 customers a day who average purchasing 5 items each. The average daily demand is 300 customers. The convenience store currently operates 12 hours a day. Each order takes approximately 2 minutes.

Required

  1. What is the average customer waiting time, in minutes?
  2. What is the cycle time for an order?
  3. What is the waiting time if the average daily demand remains at 300 customers?

 

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