Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mrs. Li is a very popular hair salon. It offers high-quality hair-styling and physical relaxation services at a reasonable price, so it always has

image text in transcribed

Mrs. Li is a very popular hair salon. It offers high-quality hair-styling and physical relaxation services at a reasonable price, so it always has unlimited demand. The service process includes five activities that are conducted in the sequence described below. (The time required for each activity is shown in parenthesis): Activity 1: Welcome a guest and offer homemade herb tea. (10 minutes) Activity 2: Wash and condition hair. (10 minutes) Activity 3: Neck, shoulder, and back stress release massage. (10 minutes) Activity 4: Design the hair style and do the hair. (25 minutes) Activity 5: Check out the guest. (5 minutes) Three servers (S1, S2, and S3) offer the services in a worker-paced line. The assignment of tasks to servers is the following: S1 does Activity 1. S2 does Activities 2 and Activity 3. S3 does Activities 4 and Activity 5. a) Which server is the bottleneck of the process? b) What is the utilization of server 2? c) What is the average labor utilization of the servers? Assume the process operates at its capacity. d) Assume a wage rate of $18 per hour. What are the direct labor costs for one guest? e) To increase the service rate, Mrs. Li is considering two alternatives: Alternative I: To hire a new employee to help anyone (and only one) of the servers without changing the tasks performed by each server. Alternative II: To redesign the assignment of tasks to servers. For this, Mrs. Lis is evaluating to reassign Activity 5 from S3 to S1. What would be the costs of direct labor of serving one guest under each of the two alternatives? Assume that the system operates at its capacity. Explain why?

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

Step: 3

blur-text-image

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

Essentials of Management

Authors: Andrew J. DuBrin

9th Edition

538478233, 2900538478235, 978-0538478236

More Books

Students also viewed these General Management questions

Question

What is performance measurement?

Answered: 1 week ago