Executives of Gordos Fast Foods recently approved a franchise in a suburb of Muntinlupa The newly franchised unit will include drive up window service Customers who use the drive up window service will place their orders at an intercom station near the rear of the parking lot They will then drive to the service window to receive their orders and pay their bills The franchisee is uncertain how best to design and operate the drive up window After some discussion, she has narrowed the options to the following three A single window operated by one employee The employee will first take a customers money to pay for the food, return any change to the customer, fill the order, and hand the filled order to the customer The average time to provide this service is expected to be 1 minute, 15 seconds A single window operated by two employees The first employee will take a customers money and return any change, while the second employee will fill the order and deliver it to the customer The average time to provide this service is expected to be one minute Two windows, each operated by one employee Each window would have the same operating characteristics as the single window in option 1 Arriving cars would enter a single waiting line and move to the first window available after reaching the head of the waiting line Employees will be paid Php 350 hour, including benefits Facility and equipment costs and overhead expenses will add Php 750 hour for the single window options (options 1 and 2) and Php 1500 hour for the two window option (option 3) As a measure of customer satisfaction and willingness to patronize the franchise, a value of Php 1000 hour will be used in the analysis for the time a customer spends waiting in line Customers are expected to arrive at an average (Poisson distributed) rate of once every two minutes Service will be on a negative exponential distribution Help the franchisee select the best choice among the three options that will be presented Some factors to consider should be the cost savings and the efficiency of service brought to the customers

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Executives of Gordos Fast Foods recently approved a franchise in a suburb of Muntinlupa. The newly franchised unit will include drive-up window service. Customers who

Executives of Gordos Fast Foods recently approved a franchise in a suburb of Muntinlupa. The newly franchised unit will include drive-up window service. Customers who use the drive-up window service will place their orders at an intercom station near the rear of the parking lot. They will then drive to the service window to receive their orders and pay their bills.

The franchisee is uncertain how best to design and operate the drive-up window. After some discussion, she has narrowed the options to the following three:

A single window operated by one employee. The employee will first take a customers money to pay for the food, return any change to the customer, fill the order, and hand the filled order to the customer. The average time to provide this service is expected to be 1 minute, 15 seconds.

A single window operated by two employees. The first employee will take a customers money and return any change, while the second employee will fill the order and deliver it to the customer. The average time to provide this service is expected to be one minute.

Two windows, each operated by one employee. Each window would have the same operating characteristics as the single window in option 1. Arriving cars would enter a single waiting line and move to the first window available after reaching the head of the waiting line.

Employees will be paid Php 350/hour, including benefits. Facility and equipment costs and overhead expenses will add Php 750/hour for the single-window options (options 1 and 2) and Php 1500/hour for the two-window option (option 3). As a measure of customer satisfaction and willingness to patronize the franchise, a value of Php 1000/hour will be used in the analysis for the time a customer spends waiting in line. Customers are expected to arrive at an average (Poisson-distributed) rate of once every two minutes. Service will be on a negative exponential distribution.

Help the franchisee select the best choice among the three options that will be presented. Some factors to consider should be the cost savings and the efficiency of service brought to the customers.