Georgette Scissors, a hair stylist, is about to open a hair salon in University City. The following
Question:
Georgette Scissors, a hair stylist, is about to open a hair salon in University City. The following data is taken from her business plan. Following the demand projection, one customer arrives every 20 minutes starting at 9AM with the last customer arriving at 5:40 pm. The customers arrive exactly every 20 minutes because they receive appointments (to simplify the analysis, you can assume that every customer shows up for her appointment and does so exactly on time). Customers arrive to a waiting area with unlimited capacity and then follow the same sequence of steps shown below:
Step 1: Color hair. 30 mins/customer.
Step 2: Sit under the Bonnet dryer. This is a chair-mounted drying hood that does not require an attendant. 25 mins/customer
Step 3: Rinse hair. 15 mins/customer
Step 4: Cut hair. 20 mins/customer.
Step 5: Style hair. 15 mins/customer.
Step 6: Payment. 5 mins/customer.
Georgette will be solely in charge of cutting customers’ hair (Step 4). Georgette will hire four workers to help her with coloring (Step 1), rinsing (Step 3), styling (Step 5) and collecting payments (Step 6). Each of these employees is exclusively dedicated to one of these four tasks. Georgette will also purchase one bonnet dryer for Step 2, which does not require a worker to be involved in the activity.
1. Draw a process flow diagram of the operations. Indicate the capacities of all operations. Also indicate the flow rate into and out of each operation. Be sure to identify the bottleneck of the process.
2. What is the utilization of the worker rinsing hair?
3. How many customers will be in the waiting room (waiting to be attended) at 5:59 pm?
An operations expert who looks at the business plan suggests redistributing the existing workers among the 4 stations not including cutting. He suggests that Georgette can a) assign one worker to perform two or more operations (the operations do NOT have to be adjacent to each other in the process flow) and b) assign several workers to perform the same operation (but the tasks cannot be split). Assume there is enough space in the salon and Georgette will buy more equipment and chairs if needed. Georgette will continue to be the only worker in charge of cutting.
1. What is the highest possible process capacity that can be achieved this way? How many additional bonnet dryers should she buy to maximize the flow rate? (Recall: More equipment can be purchased, but no additional employees can be hire.
Question 2 (6 points)
Rent-to-buy (RTB) rents medical equipment with the option of converting rentals into eventual purchases. The company is looking to understand better its X-ray machine rental operations. Here are some measures of their current operations. For X-ray machines, RTB signs 1,000 new leases every month. Each lease lasts a period of 3 months. Customers return the X-ray machine to RTB upon the completion of 3 months. In addition to those in circulation (i.e., X-ray machines that are currently with customers), RTB holds about 1,500 X-ray machines in storage.
- 1. On average, how many X-ray machines does RTB own?
2. Some of RTB’s customers purchase their X-ray machines at the end of their lease. On average, RTB sells 220 X-ray machines every month to end-of-lease customers. RTB immediately replaces them by purchasing new units. On average, how long does RTB own a machine?
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen