Problem 5-1 McBurger’s fast-food restaurant has a drive through window with a single server who ..

Question # 00053535 Posted By: jia_andy Updated on: 03/09/2015 08:05 AM Due on: 06/23/2015
Subject Accounting Topic Accounting Tutorials:
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Ch. 5 and Ch. 6 of Operations Management:

 •Problem 5-1 McBurger’s fast-food restaurant has a drive-through window with a single server who takes orders from an intercom and also is the cashier. The window operator
is assisted by other employees who prepare the orders. Customers arrive at the ordering station prior to the drive-through window every 3.6 minutes (exponentially distributed) and the service time is 2.4 minutes (exponentially distributed). Determine the average
length of the waiting line and the waiting time. Discuss the quality implications of your results. If you decide that the quality of the service could be improved, indicate what things you might do to improve quality. 

•Problem 6-5 Patricia Zell, a dollmaker from Olney, , is interested in the mass marketing and production of a ceramic doll of her own design called Tiny Trisha. The initial investment required for plant and equipment is estimated at $25,000. Labor and material costs are approximately $10
per doll. If the dolls can be sold for $50 each, what volume of demand is necessary for the Tiny Trisha doll to break even?

 •Problem 6-6 Although it will fulfill her lifelong dream, Patricia is not confident that demand for her Tiny Trisha doll will exceed
the breakeven point computed in Problem 6-5. If she chooses a less appealing site and does more of the work by hand, her initial investment cost can be reduced to $5000, but her per-unit cost of manufacture will rise to $15 per doll. 
1.What is the break even point for this new process?
 2.Compare this process to the process proposed in the previous problem. For what volume of demand should Patricia choose this process?


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Tutorials for this Question
  1. Tutorial # 00050260 Posted By: jia_andy Posted on: 03/09/2015 08:07 AM
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    The solution of Ch. 5 and Ch. 6 of Operations Management problem 5-1,6-5,6-6...
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