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Pando Inc. is a fast food restaurant which offers 4 main types of sandwiches: Pa

ID: 431855 • Letter: P

Question

Pando Inc. is a fast food restaurant which offers 4 main types of sandwiches: Pando – classic (C), Pando – premium (P), Pando – exotic (E), and Pando – ultimate (U). Every day, the restaurant operates for 10 hours and it is expecting to sell 500 sandwiches. And from the past data, 30% of the demand is for C, 20% is for P, 45% is for E, and 5% is for U. There are up to five steps in the process of making sandwiches, listed below with activity times. 80% of customers want their sandwich toasted, no matter which sandwich is ordered.

Step

Classic

Premium

Exotic

Ultimate

Prepare bread

.75 minutes

.75 minutes

1.5 minutes

1.5 minutes

Prepare meat

.5 minutes

.8 minutes

1.5 minutes

1.5 minutes

Toast

.5 minutes

.5 minutes

.75 minutes

.75 minutes

Wrap

.5 minutes

.5 minutes

1 minute

.5 minutes

Checkout

.5 minutes

.5 minutes

.5 minutes

.5 minutes

Suppose that there is one worker at each step. Answer the following questions.

1. Defining one flow unit as one minute of work, what is the capacity per day for the worker at “Toast” step? Round your answer to the nearest integer. Your answer is . (1 point)

2. Defining one flow unit as one minute of work, what is the demand rate per day for the worker at “Toast” step? Round your answer to the nearest integer. Your answer is . (1 point)

3. The implied utilization rate for the worker at “Toast” step is . Ignore the percentage sign and round your answer to the nearest integer. For example, if your answer is 43.21%, input 43. (1 point)

4. The implied utilization rate for the worker at “prepare bread” step is . Ignore the percentage sign and round your answer to the nearest integer. For example, if your answer is 43.21%, input 43. (1 point)

5. The implied utilization rate for the worker at “prepare meat” step is . Ignore the percentage sign and round your answer to the nearest integer. For example, if your answer is 43.21%, input 43. (1 point)

6. The implied utilization rate for the worker at “Wrap” step is . Ignore the percentage sign and round your answer to the nearest integer. For example, if your answer is 43.21%, input 43. (1 point)

7. Worker at which step is the bottle neck resource? Input 1 for the worker at “prepare bread” step; input 2 for the worker at “prepare meat” step; input 3 for the worker at “toast” step; input 4 for the worker at “wrap” step; and input 5 for the worker at “checkout” step. Your answer is . (1 point)

8. The manager expects a demand increase for all sandwiches due to a promotion. The daily total demand is estimated at 600 sandwiches under this promotion. The demand distribution among the four types of sandwiches also shifts to 25%, 25%, 40%, and 10% for C, P, E, and U sandwiches. Other parameters stay the same. The implied utilization rate for the worker at “Toast” becomes . Ignore the percentage sign and round your answer to the nearest integer. For example, if your answer is 43.21%, input 43. (1 point)

9. Under the new demand distribution, worker at which step is the bottle neck resource? Input 1 for the worker at “prepare bread” step; input 2 for the worker at “prepare meat” step; input 3 for the worker at “toast” step; input 4 for the worker at “wrap” step; and input 5 for the worker at “checkout” step. Your answer is . (1 point)

Step

Classic

Premium

Exotic

Ultimate

Prepare bread

.75 minutes

.75 minutes

1.5 minutes

1.5 minutes

Prepare meat

.5 minutes

.8 minutes

1.5 minutes

1.5 minutes

Toast

.5 minutes

.5 minutes

.75 minutes

.75 minutes

Wrap

.5 minutes

.5 minutes

1 minute

.5 minutes

Checkout

.5 minutes

.5 minutes

.5 minutes

.5 minutes

Explanation / Answer

1. The time one worker will take a toast step will be found by total time taken at this step is:

= .5+.5+.75+.75 = 2.5 minutes

Hence the time will be = 15.8 / 2.5 = 6.32

Hence, capacity per day is 6 sandwiches to the nearest integer. Since no sandwich can be produced half- way.

2. Demand rate per day for the worker at Toast.

= 30% , 20%, 45% and 5% take the order rates multiply by the time rates of various steps i.e.

= .30* 2.25 + .20* 2.55 + .45* 4.75 + .05* 4.25

= .675 +  0.51+  2.1375 + 0.2125 = 3.535

The time for the toasting process

= .5 + .5 + .75 + .75 = 2.5

But those who will prefer their sandwiches toasted is only 80%

= 2.5 * 80% = 2

Hence, the demand rate = 3.535 / 2 = 1.675 to the nearest integer we have = 2

3. % implied utilization rate = Actual output / potential output * 100

= 2.5 / 15.8 * 100 = 15.8%

To the nearest integer we have = 15

4. The total time taken at prepare bread stage is:

= .75 + .75 + 1.5 + 1.5 = 4.50

Hence, this is the actual output

The utilization rate = 4.50 / 15.8 * 100 = 28%

5. At prepare meat stage:

The time is taken to prepare meat process:

= .5 + .8 + 1.5 + 1.5 = 4.3

Utilization rate = Actual output / Potential output * 100

= 4.3 / 15.8 * 100 = 27

6. At the wrapping stage:

The utilization rate is given by the total time to wrap

= .5 + .5 + 1 + .5 = 2.5

Utilization rate = 2.5 / 15.8 * 100 = 15

7. The above refers to the stage that causes the whole process to slow down. Hence, it is at input 1. Prepare bread stage.

8. For the new demand to 25%, 25%, 40% and 10% for C,P,E and U the total time required,

= .25 * 2.25 + .25 * 2.55 + .40 * 4.75 + .10 * 4.25

= 0.5625 + 0.6375 + 1.9 + 0.425 = 3.525

But the toasting time = .5 + .5 + 1 + .5 = 2.5

2.5 * 80% = 2

Hence, the rate = 2 / 3.525 * 100 = 57%

9. The bottle neck resource is at input process one. Prepare bread stage. Since after the change in demand and the percentage on preference the rates on utilization rates are not affected.