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Chapter 1: Q5-10OQ (page 126)

Owners of a local restaurants are concerned about their ability to provide quality service as they continue to grow and attract more customers. They have collected data from Friday and Saturday nights, their busiest times of the week. During these time periods, about 75 customers arrive per hour for service. Given the number of tables and chairs, and the typical time it takes to serve a customer, the owners estimate they can serve on average about 100 customers per hour. During these nights, are they in the zone of service, the critical zone, or the zone of no service?

Short Answer

Expert verified

It is a critical zone.

Step by step solution

01

Capacity Utilization

Capacity utilization is referred to as the range to which a production unit or nation uses its manufacturing capabilities to manufacture a product.

02

To get it is in which zone, we calculate capacity utilization

Given: Arrival rate = 75

Service rate = 100

Using the formula:

Capacity Utilization = Arrival rate/ Service rate

= 75/100

In percentage = 75%

The critical zone of service is from 75-to 100%. Since Capacity utilization is just below 75%, it is in the zone of service.

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Most popular questions from this chapter

Always Rain Irrigation, Inc., would like to determine capacity requirements for the next four years. Currently, two production lines are in place for making bronze and plastic sprinklers. Three types of sprinklers are available in both bronze and plastic: 90-degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. Management has forecasted demand for the next four years as follows:

Yearly Demand

1 (IN 000s)

2 (IN 000s)

3 (IN 000s)

4 (IN 000s)

Plastic 90

32

44

55

56

Plastic 180

15

16

17

18

Plastic 360

50

55

64

67

Bronze 90

7

8

9

10

Bronze 180

3

4

5

6

Bronze 360

11

12

15

18

Both production lines can produce all the different types of nozzles. The bronze machines needed for the bronze sprinklers require two operators and can produce up to 12,000 sprinklers. The plastic injection molding machine needed for the plastic sprinklers requires four operators and can produce up to 200,000 sprinklers. Three bronze machines and only one injection molding machine are available. What are the capacity requirements for the next four years? (Assume that there is no learning).

鈥淧roject control should always focus on the critical path.鈥� Comment.

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