Question: Question 3 . 1 ( Total: 1 6 marks ) Kim's Convenience store has a variable demand. On a given day, demand ranges from 2

Question 3.1(Total: 16 marks) Kim's Convenience store has a variable demand. On a given day, demand ranges from 270 to 330 customers a day who average purchasing 5 items each. The average daily demand is 300 customers. The convenience store currently operates 12 hours a day. Each order takes approximately 2 minutes. Required 1. What is the average customer waiting time, in minutes? 2. What is the cycle time for an order? 3. What is the waiting time if the average daily demand remains at 300 customers? Question 3.2(Total: 15 marks) Fit-For-A-King Inc. manufactures foam products for several upholstery companies. This company has two workstations, mixing/heating and cutting/assembly. The mixing/heating station is limited by the capacity of the equipment. Cutting/assembly is limited by the speed of the cutting machine workers. Cutting/assembly normally lags behind mixing/heating. Because the demand has increased in recent months, management is considering adding another person to cutting/assembly. This would increase the department's costs by $4,000 a month. If the person is moved from mixing/heating, that department's cost would decline by $3,000. By keeping mixing/heating laborers the same, the department can increase production on-call by 10 percent. Current idle time in mixing/heating averages one-half person a day for a net cost of $1,400 a month. Required 1. What is the net effect of moving the employee from mixing/heating to cutting/assembly?2. What is the net effect if a new employee is hired for cutting/assembly?

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