Question

In: Operations Management

LITTLE’S LAW: Diant grocery stores wish to estimate time customers spend, on average, in store and...

LITTLE’S LAW: Diant grocery stores wish to estimate time customers spend, on average, in store and in a checkout line. The results of the data collected are as below:

Avg. rate of customers entering store = 300 cust/hr

Avg. # of customers in store = 150 cust

% of customers who do not make a purchase = 5%

Avg. # customers in checkout lanes = 28.5 cust

a) How much time does the average customer spend in the store?

b) How much total time is spent, on average, to check out? Hint: This is the time that is spent in the checkout lane.

Solutions

Expert Solution

(a)

The time spent in the store is 0.50 hrs. = 30 minutes

(b)

The time spent in the checkout lane = 0.10 hrs. = 6 minutes


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