In: Operations Management
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.
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 |