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- Many of a bank’s customers use its automatic teller machine to transact business after normal banking hours. During the early evening hours in the summer months, customers arrive at a certain location at the rate of one every other minute. This can be modeled using a Poisson distribution. Each customer spends an average of 86 seconds completing his or her transactions. Transaction time is exponentially distributed. a. Determine the average time customers spend at the machine, including waiting in line and completing transactions. (Do not round intermediate calculations. Round your answer to the nearest whole number.) Average time minutes b. Determine the probability that a customer will not have to wait upon arriving at the automatic teller machine. (Round your answer to 2 decimal places.) Probability c. Determine the average number of customers waiting to use the machine. (Round your answer to 2 decimal places.) Average number customers
- Should Wendy’s drop Chili from it’s menu? Explain in a concise paragraph. Note: use CVP Analysis to compare Costing the Chili Wendy’s chili was prepared daily by the assistant manager, in accordance with Wendy’s secret recipe. It was slow-simmered in a double boiler on a separate range top for a period of four to six hours. While cooking, the chili had to be stirred at least once each hour, and at the end of the day it was refrigerated for sale the following day Normally, it took between 10 and 15 minutes to prepare a pot (referred to at Wendy’s as a batch) of chili. First, the 48 quarter-pound cooked ground beef patties needed for a batch were obtained, if available, from the walk-in cooler. This took about one minute. These patties had been “well-done” sometime during the previous three days. Most of the time, it was not necessary to cook meat specifically for use in making chili, although the need to do so was more likely to occur during the months of October through March when approximately 60% of total annual chili sales occurred. If, as only happened approximately 10% of the time, it became necessary to cook meat specifically for use in making chili, the number of beef patties needed were taken from the trays of uncooked hamburgers that had been prepared using a special patty machine, at the rate of 120 patties every five minutes, earlier that morning. On average, it toolk 10 minutes to cook 48 hamburger patties. Before it was placed in the chili pot, the meat had to be chopped into small pieces. This generally took about five minutes to do. The remaining ingredients then had to be obtained from the shelves and mixed with the meat. This process also took about five minutes to complete, after which the chili was ready to be cooked. The quantities and costs of the ingredients needed to make a batch of chili and the labor costs associated with the different classifications of restaurant personnel are shown in Tables 4 and 5. Other direct costs associated with the chili included serving bowls, $0.035 each; lids for chili served at the carry-out window, S0.025 each; and spoons, $0.01 each. Table 4. Chili ingredients and costs Cost $2.75/can $1.25/can $1.00/packet $2.25/can antit on 1 No. 10 can of crushed tomatoes 5 46-0z. cans of tomato juice 1 Wendy’s seasoning packe 2 No. 10 cans of red beans 48 Cooked quarter-pound ground beef patties 12 lb. of ground bee $3.50/lb Note: The batch of chili described above yielded approximately 57 8-ounce servings. Table 5. Restaurant labor costs. Description Store Manager Co-Manager Assistant Manager Management Trainee Crew ost $800.00/week (salary) $12.50/hour $10.50/hour $5.75/hour Note: Payroll taxes and other employee-related costs averaged about 10% of the above amounts. https://d2vlcm61l7u1fs.cloudfront.net/media%2F6a7%2F6a7b0249-233d-4922-8c96-c99f3a985857%2Fphp4DXoke.png
- Bill Youngdahl has been collecting data at the TU student grill. He has found that, between 5:00 P.M. and 7:00 P.M., students arrive at the grill at a rate of 25 per hour (Poisson distributed) and service time takes an average of 2 minutes (negative exponential distribution). There is only 1 server, who can work on only 1 order at a time. a. What is the average number of students in line? b. What is the average time a student is in the grill area? c. Suppose that a second server can be added to team up with the first (and, in effect, act as 1 faster server). This would reduce the average service time to 90 seconds. How would this affect the average time a student is in the grill area? d. Suppose a second server is added and the 2 servers act independently, with each taking an average of 2 minutes. What would be the average time a student is in the system?
- PizzaTime Restaurants is building a new pizza place and needs to determine how big to make the various parts of its facility. It wants to be able to accommodate a maximum of 300 customers per hour at its peak times. PizzaTime has collected the following information: the average time to place and receive an order is 1.05 minutes, 30 percent of the customers have cars and require parking spots, and the average length of time at the restaurant is 50 minutes per customer. Assuming a capacity cushion of 20 percent. a. Find the number of cash registers required. (assume an average of 4 customers per group) (Round up your answer to the next whole number.) Number of cash registers 2 b. Find the number of parking spaces needed. (Do not round intermediate calculations. Round up your answer to the next whole number.) Number of parking spaces c. Find the number of seats/tables needed. (assume 4 seats per table) (Round up your answer to the next whole number.) Number of seats/tables