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a) What is the implied utilization of the frozen drink maker? b) Which resource

ID: 398960 • Letter: A

Question

a) What is the implied utilization of the frozen drink maker?

b) Which resource has the highest implied utilization?

c) How do the levels of implied utilization change as a response to changing the percentage of the customers who order food to 30%?

d) Disregard part c), what is the capacity of the system in terms of customers/hour?

d) Disregard part c), Starbucks executive apologizes and says that she was mistaken about the process and in this specific store a new espresso machine has been installed which is much faster and now it only takes 30 seconds to make an espresso drink. As a result of this change, now the ground coffee is also handled by the espresso drink maker and cashiers no longer handle ground coffee orders. Which resource is the bottleneck and what is the capacity of the system?

(Starbucks) After an "all night" study session the day before their last final exam, four students decide to stop for some much-needed coffee at the campus Starbucks. They arrive at 8:30 a.m. and are dismayed to find a rather long line. Fortunately for the students, a Starbucks executive happens to be in line directly in front of them. From her, they learn the following facts about this Starbucks location: I. There are three employee types: There is a single cashier who takes all orders, prepares nonbeverage food items, grinds coffee, and pours drip coffee. There is a single frozen drink maker who prepares blended and iced drinks. There is a single espresso drink maker who prepares espressos, lattes, and steamed drinks . II. There are typically four types of customers: Drip coffee customers order only drip coffee. This requires 20 seconds of the cashier's time to pour the coffee. Blended and iced drink customers order a drink that requires the use of the blender. These drinks take on average 2 minutes of work of the frozen drink maker. Espresso drink customers order a beverage that uses espresso and/or steamed milk. On average, these drinks require 1 minute of work of the espresso drink maker. Ground coffee customers buy one of Starbucks' many varieties of whole bean cof- fee and have it ground to their specification at the store. This requires a total of 1 minute of the cashier's time (20 seconds to pour the coffee and 40 seconds to grind the whole bean coffee)

Explanation / Answer

Answer a:

Capacity= 30 coffee per hour

Actual capacity = 20 coffee per hour

Implied utilization of frozen drink maker= actual output/ capacity= 20/30= 2/3 ie 66.6%

Answer b: cashier time

Drip coffee pouring time = 20sec * 25 = 500 sec per hour

Ground coffee serving time = 60 sec*5 = 300 secs per hour

total no. of customers billing time (including 25% food order time) = 25+20+70+5 +30= 150 customers* 20 secs= 3000sec per hour

therefore, total cashier actual time= 3800 secs

cashier Capacity= 60*60 secs = 3600 secs

Implied utilization of cashier= actual output/ capacity= 3800/3600= 1.055 ie 105.5%

espresso drink maker

Capacity= 60 coffee per hour

Actual capacity = 70 coffee per hour

Implied utilization of espresso drink maker= actual output/ capacity= 70/60= 1.166 ie 116.6%

Therefore, the espresso drink maker has the highest Implied utilization

Answer c:

when the customers ordering food changes to 30%

total no. of customers billing time (including 30% food order time) = 25+20+70+5 +36= 156 customers* 20 secs= 3120sec per hour

therefore, total cashier actual time= 3920 sec

cashier Capacity= 60*60 secs = 3600 secs

Implied utilization of cashier= actual output/ capacity= 3920/3600= 1.088 ie 108.8%

The level of implied utilization of cashier changed from 10.5.5% to 108.8%

Answer d:

Total capacity of the system= 25+20+70+5 = 120 customers per hour

Answer e:

New modifications

Espresso drink maker capacity increases to =120 espresso coffee per hour + 5 ground coffee per hour

Now the Espresso drink maker will take 35 mins for Espresso drink and 5 mins for ground coffee

Implied utilization of espresso drink maker= actual output/ capacity= 40/60= 0.666 ie 66.6%

And now removing ground coffee time from cashier time we get= 3800 sec – 300 secs= 3500 sec

Implied utilization of cashier= actual output/ capacity= 3500/3600= 97.2%

Because of the new machine: no bottleneck resource. But the Cashier is the most utilized resource

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