| Capacity Problems
Fat Charlie’s Restaurants is building a new burger place and needs to determine how big to make the various parts of its facility. It wants to be able to accommodate a maximum of 500 customers per hour at its peak times. Fat Charlie’s has collected the following information: the average time to place and receive an order is 1.25 minutes, the average cost per order is $11.76, the average time spent in the restroom is 0.4 minutes (50 percent of customers are men and 50 percent women), 20 percent of the customers have cars and require parking spots, and the average length of time at the restaurant is 32minutes per customer. Approximately 25% of the vehicles are trucks or SUVs. There are several large offices close by which generate a lot of foot traffic. Employees are required to park in a remote parking lot (do not add parking places for employees).
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Rocky’sPre-Cast Shop is considering two different processes for completing Pre-Cast jobs. Process A uses one person to setup the job and do the pre-casting. If this approach is used, an experienced person can complete an average of 20 jobs per day. Process B uses two people. One person does the setup and the second person does the actual pre-casting. Setup on one job can be done while pre-casting is being completed on another but pre-casting must be completed on a job before the pre-cast machine can start processing the next. After some practice, this second process can be completed with a standard time of 8 minutes for setup and 15minutes for actual pre-casting. In either case, assume an 8-hour day, 5 days per week, 250 days per year. The two employees in process B can start their shifts at different times.
| 3. | Assuming ideal conditions, what is the maximum capacity of process B annually? | |
| 4. | If Rocky’s is primarily interested in providing low cost to customers, which process should he put in place? |
