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Monique's Gas-N-Go Is Considered to Have a Variable Demand

question 39

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Monique's Gas-n-Go is considered to have a variable demand.The daily demand ranges from 240-300 customers per day,and they each purchase an average of four items.The average daily demand is 270 customers.The convenience store currently operates 12 hours each day and each order takes approximately 2 minutes.
Required
(a) Compute the average waiting time in minutes; (b) compute the cycle time for an order;and, (c) If Monique increased the hours that the store is open per day to 18 hours,how would that effect the average waiting time?


Definitions:

Economies of Scale

Benefits in expenses that companies gain because of their operational size, typically seeing a reduction in cost for each unit produced as the size of operations grows.

Economies of Scale

Businesses achieve cost savings from their large scale of operations, as the cost per unit produced decreases when the scale increases.

Purchasing Power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.

Economies of Scale

The cost advantage achieved when increasing the scale of production leads to a reduction in the average cost of each unit produced.

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