Entrepreneur John Doe has just founded Pizza- Ready, which will accept pizza orders for pickup over the phone. Pizza- Ready’s strategy is to compete with established pizza restaurants by offering superior, fresh, made- to- order deep- dish pizza and excellent service. As part of his advertising campaign, Doe will publish an ad stating, “If your pizza is not ready in 20 minutes, that pizza plus your next order are on us.” Doe has done extensive research on the pizza making process and knows that all fresh deep- dish pizzas require 15 minutes of oven time and 2 minutes of preparation. Moreover, as part of its excellent service, Pizza- Ready will accept orders whenever customers place them, and a marketing study estimates that Pizza- Ready can count on an average demand of 20 pizzas per hour. Doe, therefore, has ordered five pizza ovens, each of which is able to bake one pizza at a time. Doe is now looking for a silent partner to help carry the financial burden of his start- up company. Given the structure of this business, a potential partner has asked you whether Pizza- Ready would be a profitable investment. What would you recommend, and why?
Answer to relevant QuestionsIs there a difference between low inventories and fast inventory turnover? Refer to Exercise 3.5. Once the triage system is put in place, it performs quite close to expectations. All data conform to planners’ expectations except for one set— the classifications made by the nurse practitioner. ...M. M. Sprout, a catalog mail order retailer, has one customer service representative (CSR) to take orders at an 800 telephone number. If the CSR is busy, the next caller is put on hold. For simplicity, assume that any number ...Burrito King, a new fast- food franchise, has had problems with its drive- through window operations. Customers arrive at an average rate of one every 30 seconds. Current service time has averaged 25 seconds with a standard ...A bank has recently taken over the billing function of a company. An agreement stipulates that the bank should process 99.2% of the bills within 4 hours. A study of the current process indicates that the processing time ...
Post your question