Operations Management
Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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Chapter D, Problem 13P

a)

Summary Introduction

To determine: The average waiting time of the customer.

Introduction: The mathematical study which analyses the causes of delay in the waiting line is known as queuing theory. The theory examines all components in the waiting line such as arrival process, service process, and number of servers, system and customers.

b)

Summary Introduction

To determine: The average number of customers waiting to place order.

c)

Summary Introduction

To determine: Whether Mr. PJ should add 2 or 3 clerks.

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3) Rane Brake Linings manufactures brake pads in a process focused facility; the fixed costs are nine thousand dollars per year, the variable cost is fifty dollars per brake pad, each brake pad sells for two hundred dollars.   a) Calculate the breakeven point (in units) for this operation. b) Calculate the breakeven point (in $) for this operation. c) Calculate the profit/loss on a demand of two hundred brake pads per year.   Note: You could work out the problem by hand or use excel; in chapter 5, section 5.11 of the Stevenson text, evaluating alternatives (cost volume analysis) is covered with examples; chapter 5 Stevenson lecture power point slides 34 to 44 (chapter 5 lecture: 29.49 mins to 38.87 mins) cover cost volume analysis with examples.
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