I have to finish an assignment with regard to Process Analysis.
But i am a little stuck with the calculations for capacity.
Could you please support me with the calculations for Capacity?
Thank you very much.
Mr.and Mrs. Jack Sear own and operate Electronics City, a small electronics store. Jack
Sear worked in the store as a child and while in college. Afterwards, he slowly took over
the business from his parents as they retired and moved to Florida. Jack, his wife,
Harriett, their three children, one full-time, and one part-time employee run the business.
The store carries a large assortment of electronic parts, small electronic gadgets, cell
phones, and computer tablets. Most of the year, during the week, it is rather quiet.
Except during the three nights they are open and on Saturday, in which there is a steady
stream of customers. At those busy times, everyone works, Jack, Harriet, the three
children, the full-time employee and the part-time employee. The store is open 6 days a
week, except Mondays. During the Christmas season, from Thanksgiving weekend until
Christmas, records show that they average a total of 12,000 customers.
However, during the Thanksgiving weekend and especially black Friday morning puts
tremendous pressure on them as long lines occur. As a result, the store has a small, but,
bad reputation in terms of service. Over the Thanksgiving weekend (Friday, Saturday and
Sunday), they average about 25% of their Christmas customers. Each day over the
Thanksgiving weekend the store is open 14 hours. Previous records show that 30% of the
time customers bought one item, 20% of the time bought two items, 25% of the time
bought three items, 20% of the time bought four items and 5% of the time bought five
items. Further, Friday morning from 8am and noon, their total volume per hour is double
the average hourly volume of those three days.
The store has one electronic cash register which everyone is capable of using. Customers
pay either by cash, credit or check. Store records indicated that about 35% are cash
customers, 60% paid by credit card and 5% by check. The entire checkout process
consists of bagging the items and receiving payment:
1. Keying in each item (Time required : 0.2 min per item)
2. Bagging items and receiving payment:
a. Cash customers (Time: 0.6 min per customer)
b. Credit card customers (Time: 1.0 min per customer)
c. Check cards customers (Time: 3.0 min per customer).
Write a managerial report that addresses: what is the capacity of the store, in customers
per hour; the average hourly demand during the Thanksgiving weekend and Friday
morning, and; provide suggestions to the Sear family on what to do.
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