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Problem 3 These are some questions about operational management After an all - night study session the day before their last final exam, four SWUFE
Problem These are some questions about operational management
After an allnight study session the day before their last final exam, four SWUFE students decide to
stop for some muchneeded coffee at the campus coffee shop StarYuans. They arrive at :am and
are dismayed to find a rather long line. Fortunately for the students, a StarYuans executive happens
to be in line directly in front of them. From her, they learn the following facts about this StarYuans
location:
There are employee types:
There is a single cashier who takes all orders, prepares nonbeverage food items, grinds coffee,
and pours drop coffee.
There is a single frozen drink maker who prepares blended and iced drinks.
There is a single espresso drink maker who prepares espressos, lattes, and steamed drinks.
There are typically four types of customers:
Drip coffee customers order only drip coffee. This requires seconds of the cashier's time to
pour the coffee.
Blended and iced drink customers order a drink that requires the use of a blender. These
drinks take on average minutes of work of the frozen drink maker.
Espresso drink customers order a beverage that uses espresso andor steamed milk. On
average, these drinks require minute of work of the espresso drink maker.
Ground coffee customers buy one of StarYuans' many varieties of whole bean coffee and have
it ground to their specifications at the store. This requires a total of minute of the cashier's
time seconds to pour the coffee and seconds to grind the whole bean coffee
Customers arrive uniformly at the following rates from when the store opens until am when
the morning rush is over, with no customers arriving after am:
Drip coffee customers:
Blended and iced drink customers:
Espresso drink customers:
Ground coffee customers:
Each customer spends on average seconds with the cashier to order and pay. About of
customers order food, which requires an additional seconds of the cashier's time. While waiting
in line, the students reflect on these facts and ask themselves:
What is the implied utilization of the frozen drink maker?
Which resource has the highest implied utilization?
From their conversations with the executive, they learn that StarYuans is considering a
promotion on scones, which will likely increase the percentage of customer ordering food to
How will this affect the implied utilization of the cashier? answer this as the new utilization
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