OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
7th Edition
ISBN: 9780077835439
Author: Roger G Schroeder, M. Johnny Rungtusanatham, Susan Meyer Goldstein
Publisher: McGraw-Hill Education
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Chapter 6, Problem 5P

The Swanky Hotel provides room service for its guests. The process for room service begins with a room service manager who takes orders by phone at an average of 2 minutes per order. The manager then sends the order to the kitchen, where it takes a cook an average of 16 minutes to prepare the food for each order. There are four cooks in the kitchen. If the customer orders a beverage, the room service manager sends the order to the bar at the same time the order is sent to the kitchen. It takes 3 minutes for a bartender to fill the order, and so percent of the orders require a beverage. When the kitchen and bar orders are both ready, a waiter takes them to the room and bills the guest. There are six waiters to provide the service, and each order takes 20 minutes for the waiter to complete.

  1. a. What is the capacity of the process, and what is the bottleneck?
  2. b. What is the throughput time of a typical order?
  3. c. Assume that on Friday evenings an average of 10 room-service orders per hour are placed. How many orders are in the system on average on Friday nights?

a)

Expert Solution
Check Mark
Summary Introduction

To determine: The capacity of the process.

Introduction:

Flow rate is the number of flow units through a business procedure per unit time. Flow rate refers to the number of customers who will be served per hour or the parts produced per minute.

Explanation of Solution

Given information:

Hotel S provides room service for its guests. The process starts at the room, where the guest would place the order through phone. It takes 2 minutes to receive the order by phone, which is taken by the room service manager. The order will be sent to the kitchen and it takes 16 minutes to prepare the food. There are four cooks in the kitchen.

If the guest orders a beverage along with the food, the order details will be sent to the bar at the same time as it is sent to the kitchen. 80 percent of the order comes with beverages. It takes 3 minutes to fill the order in the bar. There are six waiters and it takes 20 minutes to complete the order.

Determine the capacity:

The capacity of the service manager is 30 orders per hour (2 minutes per order).

Determine the capacity of the chefs:

The capacity of Person J’s assistant is 7 minutes per customers (it includes 2 minutes of receiving the order, 2 minutes of packing, and 3 minutes of billing).

Orders per hour=Number of chef×(Minutes per hourMinutes taken per customer by chefs)=4×(60 minutes per hour16 minutes per customer)=15 orders per hour

Hence, the chefs can handle 15 orders per hour and the bartender can handle 20 orders per hour (as he takes 3 minutes to fill).

Determine the capacity of waiter:

Orders per hour=Number of waiter×(Minutes per hourMinutes taken per customer by waiters)=6×(60 minutes per hour20 minutes per customer)=18 orders per hour

Hence, the waiters can handle 18 orders per hour.

Note: As the capacity of bartender (20 orders per hour) is more than the capacity of the kitchen (15 orders per hour), bar is not a constraint. Hence, kitchen is the bottleneck.

b)

Expert Solution
Check Mark
Summary Introduction

To determine: The average throughput time.

Introduction:

Flow rate is the number of flow units through a business procedure per unit time. Flow rate refers to the number of customers who will be served per hour or the parts produced per minute.

Explanation of Solution

Given information:

Hotel S provides room service for its guests. The process starts at the room, where the guest would place the order through phone. It takes 2 minutes to receive the order by phone, which is taken by the room service manager. The order will be sent to the kitchen and it takes 16 minutes to prepare the food. There are four cooks in the kitchen.

If the guest orders a beverage along with the food, the order details will be sent to the bar at the same time as it is sent to the kitchen. 80 percent of the order comes with beverages. It takes 3 minutes to fill the order in the bar. There are six waiters and it takes 20 minutes to complete the order.

Determine the average throughput time:

Average throughput time is the average of the time taken to receive and deliver the order. The bar time of 3 minutes is not considered, as it is done parallelly.

Average throughput time=Time taken to receive and deliver the order=2+16+20=38 minutes

Hence, the average throughput time is 38 minutes.

c)

Expert Solution
Check Mark
Summary Introduction

To determine: The number of orders in the system.

Introduction:

Flow rate is the number of flow units through a business procedure per unit time. Flow rate refers to the number of customers who will be served per hour or the parts produced per minute.

Explanation of Solution

Given information:

Hotel S provides room service for its guests. The process starts at the room, where the guest would place the order through phone. It takes 2 minutes to receive the order by phone, which is taken by the room service manager. The order will be sent to the kitchen and it takes 16 minutes to prepare the food. There are four cooks in the kitchen.

If the guest orders a beverage along with the food, the order details will be sent to the bar at the same time as it is sent to the kitchen. 80 percent of the order comes with beverages. It takes 3 minutes to fill the order in the bar. There are six waiters and it takes 20 minutes to complete the order. There is an average of 10 room-service placed on Friday evenings.

Formula to determine the average number of orders in the system:

I=T×R

Here

I refers to the number of orders in the systems.

T refers to the average throughout time.

R refers to the average flow rate in the process.

Determine the average number of orders in the system:

It calculated by multiplying the average throughput time with the average flow rate in the process.

I=T×R=(3860)×10=0.6333×10=6.33 orders

Hence, the average number of orders in the system is 6.33 orders.

d)

Expert Solution
Check Mark
Summary Introduction

To determine: The average cost of an order and the minimum cost per order.

Introduction:

Flow rate is the number of flow units through a business procedure per unit time. Flow rate refers to the number of customers who will be served per hour or the parts produced per minute.

Explanation of Solution

Given information:

Hotel S provides room service for its guests. The process starts at the room, where the guest would place the order through phone. It takes 2 minutes to receive the order by phone, which is taken by the room service manager. The order will be sent to the kitchen and it takes 16 minutes to prepare the food. There are four cooks in the kitchen.

If the guest orders a beverage along with the food, the order details will be sent to the bar at the same time as it is sent to the kitchen. 80 percent of the order comes with beverages. It takes 3 minutes to fill the order in the bar. There are six waiters and it takes 20 minutes to complete the order.

Additional information:

Waiters are paid $9 per hour and the chefs are paid $15 per hour. The room service manager is paid $18 per hour and the bartender is paid $10 per hour. The cost of beverages and food averages $6 per order and assume that 60 percent overhead is added to the direct labor.

Determine the total labor costs:

OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences), Chapter 6, Problem 5P

Labor cost can be calculated by multiplying the number of labors and the amount paid to labors per hour. If the overhead is added, the total cost is 227.20 (142+(142×0.6).

Hence, the labor cost per order including overhead is $22.70 per orders when the number of order is 10 orders per hour.

Hence, the average cost per order is $28.70 (sum of labor cost per order and the food and beverage cost).

Determine the minimum cost per order:

It is calculated by adding the value attained by dividing the total labor cost including overhead by the capacity of the chefs to the food beverage cost.

Minimum cost per order=Food and beverage cost+Total labor cost inclulding overheadCapacity of the chefs=$6+227.215=$6+$15.15=$21.15

Hence, the minimum cost per order is $21.15.

e)

Expert Solution
Check Mark
Summary Introduction

To determine: The assumptions that are made in the calculations which are not reasonable.

Introduction:

Flow rate is the number of flow units through a business procedure per unit time. Flow rate refers to the number of customers who will be served per hour or the parts produced per minute.

Explanation of Solution

Given information:

Hotel S provides room service for its guests. The process starts at the room, where the guest would place the order through phone. It takes 2 minutes to receive the order by phone, which is taken by the room service manager. The order will be sent to the kitchen and it takes 16 minutes to prepare the food. There are four cooks in the kitchen.

If the guest orders a beverage along with the food, the order details will be sent to the bar at the same time as it is sent to the kitchen. 80 percent of the order comes with beverages. It takes 3 minutes to fill the order in the bar. There are six waiters and it takes 20 minutes to complete the order.

Determine the assumptions that are made in the calculations which are not reasonable:

The assumption that is made in the calculations which is not reasonable is the notion of using the resources fully. In addition, there were no worker breaks, no missing ingredients, and no kitchen downtime. It is also assumed that there is no variation in the flow rates.

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Hilltop Restaurant is located in Dempsey Hill. The restaurant has a capacity of 35 tables to serve customers. When doing its capacity planning and evaluating operational performance, the restaurant adopts the concept of “customer group” and uses it as unit of measurement to measure the workload in the service process. A customer group is a group of one or more people who arrive, get seated at a table, eat and depart. On average, a customer group takes 70 minutes to eat dinner, and then another 25 minutes to eat dessert. On average, a customer group generates a profit of $100 on dinner, and $30 on dessert. Now assume that Hilltop leases new space to open a “dessert bar” next door, and has opened up the wall between the two units to allow inside access from the restaurant to the dessert bar. The dessert bar can accommodate 15 tables. With this change, a customer group arrives and is seated at a table in Hilltop restaurant as usual. However, when the customer group finishes eating dinner,…
Hilltop Restaurant is located in Dempsey Hill. The restaurant has a capacity of 35 tables to serve customers. When doing its capacity planning and evaluating operational performance, the restaurant adopts the concept of “customer group” and uses it as unit of measurement to measure the workload in the service process. A customer group is a group of one or more people who arrive, get seated at a table, eat and depart. On average, a customer group takes 70 minutes to eat dinner, and then another 25 minutes to eat dessert. On average, a customer group generates a profit of $100 on dinner, and $30 on dessert. (a) Assume that all customer groups eat both dinner and dessert. Estimate the maximum number of customer groups per hour the restaurant can serve (capacity rate) by applying Little’s Law. At what rate (dollars per hour) is profit generated by the restaurant if it operates at capacity rate?
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