A barbershop has the following demand for haircuts on Saturday, which is its busiest day of the
Question:
Number of Haircuts Probability
20 ............... .1
25 ............... .3
30 ............... .4
35 ............... .1
40 ............... .1
a. What is the average demand for haircuts on Saturday?
b. If the capacity is 35 haircuts, what is the average utilization of the shop?
c. If capacity is 35 haircuts, how much of a capacity cushion does it have?
d. If it costs $50 per lost haircut due to customer dissatisfaction and $100 for each unit of capacity provided, how much capacity should be built to minimize costs?
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Step by Step Answer:
a 20 1 25 3 30 4 35 1 40 1 29 haircuts b Average Utilization 1 2035 3 2535 4 3035 1 3535 1 4035 8286 ...View the full answer
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Related Book For 
Operations Management in the Supply Chain Decisions and Cases
ISBN: 978-0073525242
6th edition
Authors: Roger Schroeder, M. Johnny Rungtusanatham, Susan Goldstein
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