Chapter 19, Problem 19.24E

Waiting time. It’s a Dog’s World (IDW) makes toys for big breed puppies. IDW’s managers have recently learned that they can calculate the average waiting time for an order from the time an order is received till the time manufacturing starts. They have asked for your help and have provided the following information.

Expected number of orders for the product: 3,200

Manufacturing time per order: 5 hours

Annual machine capacity in hours: 18,000

1. 1. Calculate the average waiting time per order.

Required

1. 2. After learning about the average waiting time, IDW’s managers are confused. They do not understand why, if annual machine capacity is greater than the average number of orders for the product, there would be any waiting time at all. Write a memo to clarify the situation.
2. 3. The managers have asked for your suggestions on what they can do to minimize or eliminate waiting time. How would you respond?