A restaurant is trying to figure out how many desserts to prepare each night before the dinner rush. The restaurant must make the dessert before the rush because it takes so long, but the dessert is no good by the next day if it isn't sold that night. The dessert sells for $8, and the cost of preparing each dessert (ingredients, labor, etc.) is $2.50. Data below is on 100 evenings of dessert orders from customers, the number of orders, and the frequency that number of orders were received.

a) Fill out the table below

b) What is the profit maximizing service level (pct. Of orders filled)? ______________

c) Given the revenue and cost information, what is the profit maximizing number of desserts to prepare each day? ______________

d) What is the optimal profit level? _____________________

e) Now use the simple MB-MC/MB equation to solve the problem: _______________ SHOW WORK BELOW.

Chapter 8 Homework:

In each of the following questions, arrivals all follow a poisson distribution, activity and inter-arrival times follow an exponential distribution, all are independent, etc. (The exponential model applies; use performance.xls to solve).

For all questions, print out the table of your queueing model runs, and briefly describe the results.

Pizza King prepares a pizza in 12 minutes. To meet the demand of 20 pizzas per hour, Pizza King has 5 ovens, each of which can cook one pizza at a time. There is plenty of room for orders waiting in line (no blocking). Please report on the service of pizza King.

Customers stop by the BoRics on Brown Street at a pace of about 6 per hour throughout the day (standard arrival distribution assumptions apply). Each hair cut takes 20 minutes. The waiting area holds no more than 3 people comfortably. a. If each customer is worth $15 in revenue and generates essentially zero marginal costs (stylists are there anyway; facility is fixed) and each stylist earns $12 per hour, how many stylists maximize profits? Attach a print out of your work. b. If the waiting area was expanded, does the optimal number of stylists change? Why?

J&S Black Tax Accountants on Brown Street have 2 EZ analysts who fill out EZ tax return forms. Each form takes one half hour. Customer arrivals for EZ Customers average 3 per hour. There are 3 Advanced analysts as well who handle 3 advanced forms per hour; each take 45 minutes. The waiting room is large enough to hold as many people who might arrive. a. Which customers receive better service? Attach your work. b. If the EZ analysts were trained to be advanced, combining the two groups of employees and allowing them to do both services, what would happen to service? Use the average service time for each service.

PiobabiEty of NotRevee Cost of PioEt of Possible of Selling Seling Xth ofXti Xti Uit Xth Ihit of of dessest Pencen ventory Xth Uhitofitofhitaf f 1% 3% 2 21% 15% 16% 16% 9% 6 8 10 12L 3% 2% 10 12 0%) PiobabiEty of NotRevee Cost of PioEt of Possible of Selling Seling Xth ofXti Xti Uit Xth Ihit of of dessest Pencen ventory Xth Uhitofitofhitaf f 1% 3% 2 21% 15% 16% 16% 9% 6 8 10 12L 3% 2% 10 12 0%)