Toy-For-Fun (TFF) makes customized toys for kids. TTF’s managers are currently in a fix: although their vending machine is under-utilized according to their calculations, there is often a queue in front of the machine which incurs waiting time. They want to know the average waiting time for an order, that is, the time from which an order is received to when it is manufactured. They have asked for your help and have provided the following information:

Annual expected number of orders: 18,000 Manufacturing time per order: 20 minutes Annual machine capacity in hours: 7,200 

1. Calculate the average waiting time per order.

2. The managers enquired about the source of for waiting time and have asked for your suggestions to minimize this. How would you respond?

3. Management is expecting sales to increase. Will average waiting time increase or decrease? Explain briefly.

4. If a second machine with the same capacity is purchased, how will average waiting time be affected?

Explain briefly and show calculations if necessary.