-- anything will be helpful. for example; if anyone can help me figure out how to find capacity cushion? or weekly revenue? that would be ideal! thank you in advance!

Trs Beau Salon Introduction Three years ago, Albert and Maxine Fletcher opened the Trs Beau Salon in the bustling metropolitan area of North Haverbrook. It is located in a recently renovated section of town, near many exquisite restaurants and fashionable boutiques. Since its inception, the salon has gained an excellent reputation for its services, which include personalized cuts and styles as well as an upscale retail shop for hair care products. Co-owners Albert and Maxine spend a great deal of time getting to know their clients on a personal level. They take care to note birthdays and other special occasions in client records, and celebrate these events with hand-written cards that often include coupons for discounted services. A recent marketing survey revealed that Trs Beau's clients really appreciate the extra attention they receive at the salon. While the products and services are slightly more expensive than other nearby establishments, the chic environment and friendly, well-trained staff are worth the price. The only area in need of improvement, according to survey results, is that an appointment must be booked well in advance. Despite being very pleased with the steady stream of business, Albert and Maxine are beginning to wonder if perhaps they should take a fresh look at their business operations. Operational details The Trs Beau Salon layout is shown in Figure 1. Customers enter into a retail and reception area, where they check in with the receptionist and relax in a comfortable walting area until being called to the service area. The service area consists of two shared sink stations and seven stylist stations. Each station is dedicated to a particular stylist: Albert and Maxine each have their own station (1 and 2) which they operate full-time. Two additional full-time stylists are employed (3 and 4), as well as three part-time stylists (5 through 7). The stylist schedule for a typical week is shown in Table 1. If a stylist is unable to work on a scheduled day, a substitute stylist covers the hours so that clients do not have to reschedule their appointments. In addition to the stylists, there is one full-time and one part-time receptionist. Albert and Maxine work the reception area whenever they are not with a client. The salon closes for one week in the summer and another in the winter. All stylists at Trs Beau Salon have undergone a rigorous training and licensing process and are therefore capable of performing all of the services offered by the salon: trim; cut and style; cut and fancy style (typically for wedding parties or other special events), and a cut, color and style. The hours required, the prices charged, and the percent of customers requesting each service are shown in Table 2. Stylists provide and maintain their own tools and are responsible for cleaning their own work area between each client serviced, and at the end of the day. Cleaning times are incorporated into the total service times shown in Table 2. Inventory Although the salon is primarily a service provider, there are inventory considerations that Albert and Maxine must manage. Each client requires at least one clean towel, or more, depending on the service being provided. A certain amount of various hair care products (shampoo, conditioner, styling gel, hair spray, etc.) are used on each client, and it is difficult to meet the high standards of clients if a product is unavailable. Trs Beau uses a linens supplier that picks up dirty towels and replaces them with clean towels once a week. Historically, an average of 400 towels is used each week with a standard deviation of 20 towels. It is impossible to perform any of the salon services without clean towels, and a 98% service level is desired. If towel supply gets too low, it is possible to request an emergency delivery of clean towels from the supplier, at an added cost of course. The hair care products Trs Beau salon sells in its retail area and uses on clients having services performed are from a very exclusive and hard to find line provided from a single supplier. Over 50 different products are available in the full hair care product line, and clients are very disappointed when a product is sold out. Currently, a continuous review policy is used for all hair car products, but Albert and Maxine think that this system requires too much time to maintain for all products. A sample of some of the products offered, the volumes used on clients and sold in the retail area, and the associated costs are shown in Table 3. Albert and Maxine have determined that to call the supplier, pay for transportation, and put a shipment away costs $100. Because the stockroom is small and doesn't require special equipment or personnel, and there is very little theft of product, annual holding costs are approximately 25% of unit cost. Delivery of orders takes about one week from the local supplier As a favor to Albert and Maxine, you and your team have agreed to conduct a thorough analysis of the salon's operations, and provide recommendations to the co-owners in exchange for free haircuts. The following questions are to help provide structure to your analysis and case memorandum. Questions: 1) Analyze and discuss the competitive priorities for Trs Beau. 2) Analyze and discuss the process choice and service package considerations for Trs Beau. 3) Analyze and discuss the capacity requirements of Trs Beau: a) What is the utilization by day? By stylist? b) What is the average weekly capacity cushion? c) What is the average weekly revenue per hour? 4) Analyze and discuss the inventory considerations of Trs Beau. a) What is the safety stock needed for towels? b) What is the total cost for the two highest and two lowest annual dollar usage items from Table 3? c) What is the reorder point for the two highest annual dollar usage items from Table 3? 2. - Day* Salon Stylist schedule (by station) Total hours hours 1 3 4 5 6 7 Tues 8 8 8 4 28 Wed 10 1010 4 4 38 Thurs 8 88 4 4 4 32 Fri 10 10 10 10 10 8 8 8 64 Sat 10 10 10 10 10 10 10 70 Sun 6 6 66- 18 The salon is closed for business on Monday. 81041000 OI0AA colo ooo 10 Table 2 Service details Type of service Hours to perform Price of service Percent customers service requesting service Trim 0.5 $ 25.00 35% Cut & Style 0.75 $ 40.00 40% Cut & fancy style 1.5 $ 65.00 5% Cut/ color / style 2 $100.00 20% Table 3 Sample of Hair Care Products Volume (in Volume (in units) used in units) sold Retail Sales salon per thru retail per Products Price* week** week** Shampoo $ 20.00 10 100 Conditioner $ 25.00 8 75 Hair Spray $ 8.50 12 50 Styling Gel $ 10.00 15 125 Detangler $ 12.00 1 25 Pomade $ 7.50 0.25 3 Hair Brush $ 30.00 n/a 5 Volumizer $ 17.50 5 60 Hair Color $ 23.00 50 n/a Jeweled Barrettes $ 20.00 n/a 20 Purchase cost from supplier is 50% of sales price ** Standard deviation of demand is 10% of total weekly demand