One employee is in charge of the following activities at a refreshment stand Act

Question

One employee is in charge of the following activities at a refreshment stand Activity Activity Time per Customer Greet customer Take order Process order Print receipt 5 seconds 25 seconds 1.5 minutes 30 seconds If demand rate is 20 customers per hour and the process is not constrained by input raw materials, what are the flow rate (in customers per hour), utilization, and cycle time in minutes per customer)? Note: Here "cycle time" is the reciprocal of the Flow Rate A. 24, 1, 0.04 B. 24, 1, 2.5 O.20, 0.83, 0.05 D. 20, 0.83, 3 ENone of the options provided are correct.

Explanation / Answer

Processing time = (5 + 25 + 90 + 30) = 150 second.

Process capacity = (60 minutes/hour x 60 seconds/minute) / 150 seconds = 24 customers per hour

(a) Flow rate = Minimum(Demand and Process capacity) = Minimum of (20 and 24)

Flow rate = 20 customers per hour

(b) Utilization = Flow rate / Process capacity

= 20 customers per hour / 24 customers per hour = 0.83

(c)

Cycle time = 1/Flow rate

= (1 / 20 customers per hour) x 60 minutes/hour

Cycle time = 3 minutes per customer

Hence the correct option is d. 20, 0.83, 3

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.