Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134855424
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 4, Problem 13P
Kim Epson operates a full-service car wash, which operates from 8 A.M. to 8 P.M., 7 days a week. The car wash has two stations: an automatic washing and drying station and a manual interior cleaning station. The automatic washing and drying station can handle 30 cars per hour. The interior cleaning station can handle 200 cars per day. Based on a recent year-end review of operations, Kim estimates that future demand for the interior cleaning station for the 7 days of the week, expressed in average number of cars per day, would be as follows:
By installing additional equipment (at a cost of $50,000), Kim can increase the capacity of the interior cleaning station to 300 cars per day. Each car wash generates a pretax contribution of $4.00. Should Kim install the additional equipment if she expects a pretax payback period of three years or less?
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K
Kim Epson operates a full-service car wash, which operates from 8 A.M. to 8 P.M. seven days a week. The car wash has two stations: an automatic washing and drying station that can handle 30
cars per hour and an interior cleaning station that can handle 210 cars per day. Based on a recent year-end review of operations, Kim estimates that future demand for the interior cleaning station for
the seven days of the week, expressed in the average number of cars per day, would be as follows:
Kim
should not
Day
Cars
should
Mon.
160
Tues.
180
Wed.
150
Thurs.
140
Fri.
270
By installing additional equipment (at a cost of $60,000) Kim can increase the capacity of the interior cleaning to 300 cars per day. Each car wash generates a pretax contribution of $3.00. Should
Kim install the additional equipment if she expects a pretax payback period of three years or less?
install the additional equipment because the payback period is years. (Enter your response rounded to two decimal places.)
Sat.
260…
CoffeeVille’s main source of icome is the lunchtime trade. The cafe sells food and drinks to customers who work nearby. On weekdays, the cafe is staffed by Michael (cashier), Oliver (barista) and Lucy (waiter).
Data regarding lunchtime income for the past three months with data from previous year, is presented below.
April
Lunchtime income this year: $22,000
Lunchtime income previous year: $18,000
Average wait time for a table this year: 15mins.
Average wait time for a table previous year: 3mins.
May
Lunchtime income this year: $23,000
Lunchtime income previous year: $19,000
Average wait time for a table this year: 18mins.
Average wait time for a table previous year: 5mins.
June
Lunchtime income this year: $21000
Lunchtime income previous year: $17,000
Average wait time for a table this year: 16mins.
Average wait time for a table previous year: 4mins.
CoffeeVille recently conducted its annual customer survey. A sample of the customers feedback received includes:
“I use to love coming…
CoffeeVille’s main source of icome is the lunchtime trade. The cafe sells food and drinks to customers who work nearby. On weekdays, the cafe is staffed by Michael (cashier), Oliver (barista) and Lucy (waiter).
Data regarding lunchtime income for the past three months with data from previous year, is presented below.
April
Lunchtime income this year: $22,000
Lunchtime income previous year: $18,000
Average wait time for a table this year: 15mins.
Average wait time for a table previous year: 3mins.
May
Lunchtime income this year: $23,000
Lunchtime income previous year: $19,000
Average wait time for a table this year: 18mins.
Average wait time for a table previous year: 5mins.
June
Lunchtime income this year: $21000
Lunchtime income previous year: $17,000
Average wait time for a table this year: 16mins.
Average wait time for a table previous year: 4mins.
CoffeeVille recently conducted its annual customer survey. A sample of the customers feedback received includes:
“I use to love coming…
Chapter 4 Solutions
Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
Ch. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - The Dahlia Medical Center has 30 labor rooms, 15...Ch. 4 - A process currently services an average of 50...Ch. 4 - An airline company must plan its fleet capacity...Ch. 4 - Food Goblin Supermarkets use both cashiers and...Ch. 4 - Returning to Problem 4, under both assumption of...Ch. 4 - Purple Swift manufactures birdhouses in lots of...Ch. 4 - Macon Controls produces three different types of...Ch. 4 - Up, Up, and Away is a producer of kites and wind...
Ch. 4 - Tuff-Rider, Inc. manufactures touring bikes and...Ch. 4 - Arabelle is considering expanding the floor area...Ch. 4 - The Astro World amusement park has the opportunity...Ch. 4 - Kim Epson operates a full-service car wash, which...Ch. 4 - MKM International is seeking to purchase a new CNC...Ch. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Prob. 19PCh. 4 - Dawson Electronics is a manufacturer of high-tech...Ch. 4 - A manager is trying to decide whether to buy one...Ch. 4 - Acme Steel Fabricators experienced booming...Ch. 4 - Referring to Problem 7, the operations manager at...Ch. 4 - Darren Mack owns the Gas n’ Go convenience store...Ch. 4 - Prob. 25PCh. 4 - Prob. 1VCCh. 4 - Prob. 2VCCh. 4 - How does Southwest Airlines know they are...Ch. 4 - Prob. 4VCCh. 4 - Prob. 1CCh. 4 - Prob. 2CCh. 4 - Prob. 3C
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