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Question 4 BMW Motorrad Centurion (BMC) is a motorcycle dealer which only sells new and second hand BMW motorcycles. They also have a service centre

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Question 4 BMW Motorrad Centurion (BMC) is a motorcycle dealer which only sells new and second hand BMW motorcycles. They also have a service centre providing scheduled services on BMW motorbikes on weekdays. Services are booked beforehand by motorbike owners, and due to BMC's excellent service there is a big demand to get a motorbike serviced at BMC. Due to this big demand you can wait as long as three weeks before an open slot is available for a customer making a booking for a service. This is becoming a problem since some customers will not accept the allocated slot indicating that the waiting time is too long and that they would then rather go to another dealer which can accommodate them sooner. A typical service takes 90 minutes task time, and demands a selling price of R2 500 for a standard service. Parts and consumables cost R750 per motorbike. Most of the work (70 mins) is done by four technicians (each paid R3 200 per week), but a select set of tasks which are required for each motorbike, can only be done by the master technician Lenny, which is paid R6 500 per week. The work Lenny has to perform on each motorbike takes 20 minutes, which means that with him being the capacity constrained resource, 3 hour work-day. motorbikes are serviced per hour. Therefore BMC is willing to accept 24 motorcycles to be serviced per 8 After doing a market analysis, the management team of BMC realise that every week they lose between 10 and 15 potential customers to competitors due to the waiting time being so long. After investigating different options to capitalise on this market opportunity, they come up with the following potential change: A machine can be bought which will allow Lenny to do his tasks in less than the original 20 minutes, allowing him to do 28 motorbikes per day. The price of the machine is R152 000, and can be delivered immediately. As a consultant to BMC, using mathnagement (making decisions with numbers - but remember the correct logic), advise them what to do. Show all calculations

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