Gerard Is Choosing Between Two Methods of Organizing His Bakery

question 53

Essay

Gerard is choosing between two methods of organizing his bakery.Method one will require a counter person to wait on each customer individually before they proceed to the cashier to pay for their purchases.In this system,customers will arrive at the rate of 8 per hour and can be served by the counter person at the rate of 15 per hour.The cashier will be capable of serving customers at the rate of 20 per hour.For simplification purposes,assume that the arrival rate at the cashier phase is identical to the arrival rate at the first phase and that these waiting lines can be analyzed independently and combined.
Method two will have the two employees wait on customers as they selected their pastries and also collect their money once their selections have been made.Customers still arrive at the rate of 8 per hour but now the total service time (pastry selection and payment collection)takes 5 minutes per customer.Calculate the average number of customers in the bakery and the average time spent in the bakery for both systems and make your recommendations to Gerard.

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Definitions:

Labor

The human effort, including both mental and physical activities, employed in the production of goods and services.

Machines

Mechanical or electronic devices designed to perform specific tasks, often used to enhance efficiency and productivity in manufacturing or processing.

Total Cost

The complete expenditure incurred for producing or offering a product or service, including fixed and variable costs.

Competitive Factor Markets

Refers to markets where factors of production (such as labor, capital) are bought and sold in a competitive environment, ensuring prices are influenced by supply and demand.