Question: PART 1 : Saul Goodman loves a quick bite at Los Pollos Hermanos. Saul knows from Gustavo that Los Pollos receives a new customer every

PART1: Saul Goodman loves a quick bite at Los Pollos Hermanos. Saul knows from Gustavo that Los Pollos receives a new customer every3minutes on average(coefficient of variation=1)and on average it takes2 minutes(standard deviation of this time is2mins)for the food to be prepared and served. The counter can serve at most one person at a time and the first arriving customer is served first.
A)What is the inter-arrival time in minutes?
B)What is the capacity of Los Pollos Hermanos? You can express your answer in either customers per minute or customers per hour.
C)What is the utilization of Los Pollos Hermanos?
D)What is the coefficient of variation of the service process of Los Pollos Hermanos?
E) How long on average, in minutes, does Saul have to wait before getting served?
PART2: Gustavo runs the store for eight hours every day. An average order earns $4in revenue and costs $1in raw materials. The labor costs are $160 per day. Assume all customers that come within the8hour window are served. What are Gustavos average daily earnings(revenues cost)in dollars?{Hint: Remember all arriving customers are served.]Gustavo puts in measure to reduce the standard deviation of the service(or processing)time. Now the coefficient of variation of service time is0.5.
F) When he is not serving a customer, Gustavocooks his books. How many minutes each day, on average, can Gustavo devote to this?[Hint: Think idle time which is(1-utilization)...]
For G-H: Gustavo puts in measure to reduce the standard deviation of the service (or processing) time. Now the coefficient of variation of service time is 0.5.
G) What is the new standard deviation of service time?
H) How will the utilization change?
I)How will the time in queue change?
J)Word has spread about the reduction in standard deviation, and customers are flocking to Los Pollos Hermanos. On average,25 customers now arrive per hour. What is the average inter-arrival time in minutes?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!