Question
Four of the Operations Management Class students visit Starbucks frequently and always find a long queue. They want to conduct a study and collect the
Four of the Operations Management Class students visit Starbucks frequently and always find a long queue. They want to conduct a study and collect the following information. Only three employees are doing the following jobs
A cashiertakes all orders, prepares non-beverage food items, grinds coffee, and pours drip coffee
A single frozen drink maker who prepares blended and iced drinks
A single expresso drink maker who prepares expressos, lattes, and steamed drinks.
Four types of customers generally arrive.
C1) Drip coffee customers order only Drip coffee. This requires 30 seconds of the cashier's time to pour the coffee
C2) Blended and iced drink customers order a drink that requires the use of a blender. These drinks take on an average 2 minutes of work for the frozen drink maker
C3) expresso drink customers order a beverage that uses expresso and/or steamed milk. On average, these drinks require 1 minute of work of the expresso drink maker.
C4) Ground coffee customers buy one of Starbuck's wide varieties of whole bean coffee and have it ground to their specifications 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).
The store is open for 3 hours in the morning until 10 AM. The normal demand for each type of customer per hour is as follows.
C1 customers 25/hour
C2 customers 25/hour
C3 customers 70/hour
C4 customers 5/hour
Each customer spends, on average 20 seconds with the cashier to order and pay
Approximately 30% of all customers order food, which requires an additional 20 seconds of the cashier's time per transaction.
Given the above information,
a) what is the implied utilization of all three employees?
Starbucks plans a promotion of offering at half price! This strategy will increase the percentage of customers ordering food to 40% (the overall arrival rate will remain the same).
b) How do the levels of implied utilization change as a response to this promotion?
c) Draw a flow chart depicting processes and customer order types
(Actual utilization may be more than 100%)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started