Question Details

Answered: - Electronics City Mr.and Mrs. Jack Sear own and operate


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.


Electronics City

 

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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Oct 07, 2020

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