Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hampshire Farms Family Campground is a locally operated campground on the west coast of Newfoundland. For many years it was a farming operation and has

Hampshire Farms Family Campground is a locally operated campground on the west coast of Newfoundland. For many years it was a farming operation and has gradually been converted to a vibrant campground with many facilities for families to enjoy. The campground operates from the May 24th weekend until Thanksgiving weekend each year - 20 weeks in total (7 days a week). The July 1 weekend tends to be the start of the busy season. On this weekend travelers arrive at the registration desk at an average rate of 15 per hour; they wait in the single line for the first available staff member. The average time to service a traveler is 12 minutes. Each staff member earns $15/hour and traveler at the registration desk 'costs' $5/hour. Hampshire Farms provides firewood in bundles for their guests to purchase. The owners purchase firewood from a local supplier, with ordering costs of $50 per order and holding costs of $2.00 per bundle. Demand averages 500 bundles per day. Currently they purchase 500 bundles at a time from their supplier. The owners are considering utilizing forested unused land to produce their own firewood (with an appropriate reforestation plan). Based on their research, they have determined they have capacity to produce 800 bundles per day, and demand is 500 bundles per day. Setup costs of the machines to chop the wood into firewood is $25 and holding costs are $5 for the finished bundle. They are also considering making kindling in the firewood production facility when they are not making the firewood bundles. It would take quarter of a day for set up and half a day for production for kindling. Hampshire Farms is planning to expand for the next camping season. They have identified the activities and time frames for the project. However, because they are unable to work on the project during the winter months, they have a maximum of 24 weeks to complete the work. They also think that severe winter weather may impact this and they could have only 19 weeks to complete. The table below shows the activities and their duration as well as the weeks that could be crashed and the associated crashing cost. Crash Cost per Week ($) Duration Weeks Available Activity Precedes (weeks) to Crash A C, E 3 1 5,000 B F, H 2 C D 5 2 7,000 D K 2 - E G 6 2 9,000 F G 5 1 12,000 G K 2 - H I, J 4 1 8,000 I L 7 3 10,000 J L 6 2 4,000 K - 9 4 15,000 L 10 5 12,000 PART A (25 marks) From the information provided for the July 1 weekend, determine the following: a) (2 marks) What is the Arrival Rate? The Service Rate? b) (9 marks) If there are 4 staff working, calculate the following indicators: i. How many travelers on average would be at the registration desk (including those being served)? ii. What is the average wait time (in minutes) of travelers who have to wait? iii. What is the probability (as a percentage) of nobody having to wait? iv. What is the probability (as a percentage) of a traveler having to wait

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Managerial Accounting

Authors: Belverd E. Needles

7th Edition

0618867465, 978-0618867462

More Books

Students also viewed these Accounting questions

Question

Why? What will be my payoff?

Answered: 1 week ago

Question

State the uses of job description.

Answered: 1 week ago

Question

Explain in detail the different methods of performance appraisal .

Answered: 1 week ago