Dr. Gulakowicz is an orthodontist. She estimates that adding two new chairs will increase fixed costs by $150,000, including the annual equivalent cost of the capital investment and the salary of one more technician. Each new patient is expected to bring in $3,000 per year in additional revenue, with variable costs estimated at $1,000 per patient. The two new chairs will allow Dr. Gulakowicz to expand her practice by as many as 200 patients annually. How many patients would have to be added for the new process to break even?
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- A Northeast Airlines gate agent, Chip Gilliken,gives out seat assignments to ticketed passengers. He takesan average of 50 seconds per passenger and is rated 110% inperformance. How long should a typical agent be expected totake to make seat assignments?arrow_forwardThe owner of Eat Now Restaurant implemented an expanded menu last year. The menu was a success, drawing many more customers, who seemed to like the increased variety of the menu choices over the previous menu. But, good news soon became bad news as long waiting lines began to deter customers and business dropped off. Because of the space and other limitations, there didn’t seem to be any viable options to consider. Then a customer mentioned a technique called mass customization that was being used at his company. He said it really streamlined processing and maybe it could work for the restaurant. What costs would be involved in transitioning to this system?arrow_forwardThe owner of Eat Now Restaurant implemented an expanded menu last year. The menu was a success, drawing many more customers, who seemed to like the increased variety of the menu choices over the previous menu. But, good news soon became bad news as long waiting lines began to deter customers and business dropped off. Because of the space and other limitations, there didn’t seem to be any viable options to consider. Then a customer mentioned a technique called mass customization that was being used at his company. He said it really streamlined processing and maybe it could work for the restaurant. Describe how that approach could work at the restaurant and why it could be expected to reduce waiting lines.arrow_forward
- Identify a business operation to which you have access to information and operation to observe the physical space of the business. You can choose area of service such as clinic, restaurant, café, a specific department of a hospital/school or any other relevant business or service setting. Collect information about the capacity of service. Additionally, obtain the average number of customers obtained service for the past 6 months (each month separately). The word limit for this assignment shall be 2500 words. And the assignment shall include the following: Analyze and evaluate literature of capacity management and explain different capacity strategies and capacity constraints. Analyze and evaluate literature on demand management and explain demand management strategies. Also address the changing nature of the market demand for products or services Based on the information you have collected from the organization; discuss about the capacity and demand management strategies they are…arrow_forward. It takes a dentist 20 minutes to see one patient. What is the capacity of the dentistexpressed in patients per hour?arrow_forwardRock View Restaurant is a new fast food restaurant chain. The Operations Manager has dividedits normal drive-through service process into the following tasks:Tasks Description Task Time(InSeconds)PredecessorsA Take order 25 NoneB Receive payment 20 AC Gather drinks 35 AD Gather food 32 AE Put food etc. in bag 25 C,DF Give food to customer 10 B,E Currently, Rock View Restaurant has a single window with one person who takes the order, gather the food, collects the money and gives the food to the customer. This takes an average of 147 seconds per customer so only 25.5 cars can be served.…arrow_forward
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