Question

In: Operations Management

Suppose we are interested in estimating the average number of customers in the supermarket. On average,...

Suppose we are interested in estimating the average number of customers in the supermarket. On average, there are 15 customers entering the supermarket every 5 minutes. And on average, a typical customer spends about 20 minutes in the supermarket (from entering to exiting the market).

a. Calculate the average number of customers in the supermarket.

b. About 20% of customers leave without making a purchase. On average, a customer spends about 5 minutes in the checkout area. Estimate the average number of customers in the checkout area.

Solutions

Expert Solution

This problem will be solved using principles of Little’s law.

As per Little’s law ,

Rate of Arrival in the system ( R ) x Throughput time in the system ( T) = Inventory in the system ( I )

Answer to question a:

In the given case :

R = Rate of arrival of customers in the super market = 15/5 = 3 per minute

T = Amount of time customer spends in the supermarket = 20 minutes

Therefore ,

Average number of customers in the supermarket = I = 3 X 20 = 60

AVERAGE NUMBER OF CUSTOMERS IN THE SUPERMARKET = 60

Answer to question b :

Since 20% of customers leave without making a purchase, 80% of customers make purchases and go to checkout area

Therefore ,

R = Rate at which customers go to checkout area = 80% of arrival in the supermarket = 80% of 3 / minute= 2.4 / minute

T = Throughput time in the checkout area = 5 minutes

Therefore , average number of customers in the checkout area = R X T = 2.4 X 5 = 12

AVERAGE NUMBER OF CUSTOMERS IN THE CHECKOUT AREA = 12


Related Solutions

Suppose that you are interested in estimating the average number of miles per gallon of gasoline...
Suppose that you are interested in estimating the average number of miles per gallon of gasoline your car can get. You calculate the miles per gallon for each of the next twenty-five times you fill the tank. Suppose that in truth, the values for your car are bell-shaped, with a mean of 20 miles per gallon and a standard deviation of 1. Find the possible sample means you are likely to get based on your sample of twenty-five observations. Consider...
Suppose we have the following values on the number of customers (X) and the average profits...
Suppose we have the following values on the number of customers (X) and the average profits (Y) for fifteen stores: Store                   Customers (X)          Average Profits (Y) A                               161                              157 B                               99                              93 C                               135                              136 D                               120                              123 E                                164                              153 F                                221                              241 G                               179                              201 H                               204                              206 I                                 214                              229 J                                 101                              135 K                               231                              224 L                                206                              195 M                               248                              242 N      ...
Suppose we have the following values on the number of customers (X) and the average profits...
Suppose we have the following values on the number of customers (X) and the average profits (Y) for fifteen stores: Store                   Customers (X)            Average Profits (Y) A                               161                              157 B                               99                              93 C                               135                              136 D                               120                              123 E                                164                              153 F                                221                              241 G                               179                              201 H                               204                              206 I                                 214                              229 J                                101                              135 K                               231     ...
Suppose we are interested in knowing the effect of average number of cigarettes smoked by women...
Suppose we are interested in knowing the effect of average number of cigarettes smoked by women during pregnancy on infant birth weight ( in ounces). Suppose OLS regression estimates for the intercept and the slope coefficient are given as 119.77 and -.514 respectively. Interpret  and
You are interested in estimating the average number of pizza slices a college student eats in...
You are interested in estimating the average number of pizza slices a college student eats in one month. In a random sample of 30 college students, you find the average to be 18.924 slices with a sample variance of 120. What is the p-value for a two-sided hypothesis test where the null is that the true population mean is 14 slices per month?
A major department store chain is interested in estimating the average amount its credit card customers...
A major department store chain is interested in estimating the average amount its credit card customers spent on their first visit to the chain's new store in the mall. 15 credit card accounts randomly sampled produced a mean of $50.50 and a standard deviation of $20. Find a 95% confidence interval for the average amount the credit card customers spent on their first visit to the chain's new supply store in the mall.
A community health association is interested in estimating the average number of maternity days women stay...
A community health association is interested in estimating the average number of maternity days women stay in the local hospital. A random sample is taken of 36 women who had babies in the hospital during the past year. The following numbers of maternity days each woman was in the hospital are rounded to the nearest day. 3 3 4 3 2 5 3 1 4 3 4 2 3 5 3 2 4 3 2 2 1 6 3 4...
1.Suppose that the number of customers who enter a supermarket each hour is normally distributed with...
1.Suppose that the number of customers who enter a supermarket each hour is normally distributed with a mean of 670 and a standard deviation of 180. The supermarket is open 17 hours per day. What is the probability that the total number of customers who enter the supermarket in one day is greater than 10100? (Hint: Calculate the average hourly number of customers necessary to exceed 10100 in one 17-hour day.) 2.Assume that women's weights are normally distributed with a...
Suppose you are interested in estimating the relationship between edu (number of years of university education)...
Suppose you are interested in estimating the relationship between edu (number of years of university education) and the inc (annual income measured in ten thousand) and you run the following regression: ??? = ?? + ?? ??? + ? 4.A Suppose ?? = ???? , ?? = ???? , ??? ? = 8. Further, if you know, ?̅ = 3.2125, ?̅= 25.875, ∑ (?? − ?̅ ? ?=1 ) (?? − ?̅) = 5.8125 and ∑ (?? − ?̅) 2...
Suppose we are interested in studying flight delays. We know that on average there are 100...
Suppose we are interested in studying flight delays. We know that on average there are 100 delays in a month with a population standard deviation of 238 delays. Suppose we take a sample of 30 flight delays from American airlines only and we find that the average from that sample for that month is 306 delays. We are interested in seeing if the number of flight delays are increasing. What is the standard error? What is the margin of error...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT