Question

A small diner is open for lunch each day. The lunch counter seats a maximum of 12 customers at one time. The average time required for a customer to complete lunch 30 minutes. It takes 4 minutes of a server’s time to take care of a customer. There are two servers assigned to the counter. The cook in the kitchen can prepare an order in 1.5 minutes. Answer the following questions, assuming the diner is relatively full and operating (i.e., you are not at the start-up time).

What is the constraint in the diner? Show your work to support your answer

If the average meal costs $10 and the variable cost is $3 per meal, what is the maximum throughput (production capacity) of the diner per hour?

A new advertising campaign is estimated to increase the number of customers to 36 customers per hour. What are some ways the diner can accommodate this increase.

Answer 1

Counter Capacity: 12 customers per 30mins – 24 customers per hour

                                                                      (^bottleneck)

Server Capacity: 1 customer per 4mins- 60/4 – 15 customers per hour

Total Server Capacity: 2x15 customers per hour – 30 customers per hour

Cook Capacity: 1 customer per 1.5= 60/1.5 – 40 customers per hour

$10 - $3 = $7 profit per meal       

Maximum Throughput= 24 customers per hour x $7 = $168 per hour

Answer:-

Raising the seat price if possible, by the addition of 6 more seats, the estimated increase in the demand can be fulfilled. ( 18 seats per 30 minutes =36 per hour)

Attempts should be made to reduce the total time taken by the customer to finish the meals. Discounts can be given for carrying out meals and the customers who finish meals quickly, provide 10% discount.

If the seats are to be increased, then it is important to add the server to meet the demand. (3 servers x 15 per hour = 45 per hour)

KINDLY RATE THE ANSWER AS THUMBS UP. THANKS A LOT.