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In: Operations Management

QUESTION 1 CC Car Wash specializes in car cleaning services. The services offered by the company,...

QUESTION 1

  1. CC Car Wash specializes in car cleaning services. The services offered by the company, the exact service time, and the resources needed for each of them are described in the table following:

    Service

    Description

    Processing Time

    Resource

    A. Wash

    Exterior car washing and drying

    10 minutes

    1 automated washing machine

    B. Wax

    Exterior car waxing

    15 minutes

    1 automated waxing machine

    C. Wheel Cleaning

    Detailed cleaning of all wheels

    16 minutes

    1 employee

    D. Interior Cleaning

    Detailed cleaning inside the car

    20 minutes

    1 employee

    The company offers the following packages to their customers:

    • Package 1: Includes only car wash (service A).

    • Package 2: Includes car wash and waxing (services A and B).

    • Package 3: Car wash, waxing, and wheel cleaning (services A, B, and C).

    • Package 4: All four services (A, B, C, and D).

    Customers of CC Car Wash visit the station at a constant rate (you can ignore any effects of variability) of 50 customers per day. Of these customers, 30 percent buy Package 1, 30 percent buy Package 2, 15 percent buy Package 3, and 25 percent buy Package 4. The mix does not change over the course of the day. The store operates 10 hours a day.

d. What resource has the highest utilization rate? Input 1 for washing machine, input 2 for waxing machine, input 3 for employee at C, input 4 for employee at D.

Your answer is .

Solutions

Expert Solution

d)

Number of customers who buy package 1 = 50*0.30= 15

Number of customers who buy package 2 = 50*0.30= 15

Number of customers who buy package 3 = 50*0.15= 7.5

Number of customers who buy package 4 = 50*0.25= 12.5

Load of Service A = Flow rate of customers who buy package 1,2,3,4, which include service A * processing time of service A =  (15+15+7.5+12.5)*10 = 500 minutes per day

Load of Service B = Flow rate of customers who buy package 2,3,4, which include service B * processing time of service B = (15+7.5+12.5)*15 = 525 minutes per day

Load of Service C = Flow rate of customers who buy package 3,4, which include service C * processing time of service C = (7.5+12.5)*16 = 320 minutes per day

Load of Service D = Flow rate of customers who buy package 4, which include service D * processing time of service D = (12.5)*20 = 250 minutes per day

Capacity of each resource = 10 hours = 600 minutes per day

Utilization of washing machine at A = Load / Capacity = 500/600 = 83.3 %

Utilization of waxing machine at B = Load / Capacity = 525/600 = 87.5 %

Utilization of employee at C = Load / Capacity = 320/600 = 53.3 %

Utilization of employee at D = Load / Capacity = 250/600 = 41.7 %

Utilization of waxing machine (B) is the highest (87.5%)

ANSWER: 2 (for waxing machine)


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