Norton's Convenience Store Has a Variable Demand

question 23

Essay

Norton's Convenience store has a variable demand.The daily demand ranges from 270 to 330 customers a day who average purchasing 5 items each.The average daily demand is 300 customers.The convenience store currently operates 12 hours a day.Each order takes approximately 2 minutes.Required:
a.What is the average customer waiting time, in minutes?
b.What is the cycle time for an order?
c.What is the waiting time if the average daily demand remains at 300 customers?

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Definitions:

Straight Rebuy

A purchasing situation in which a company reorders an existing product or service from a list of acceptable suppliers without modifications.

Modified Rebuy

A buying situation in which an organization makes some changes to the specifications, prices, terms, or suppliers when repurchasing a product.

Online Auction

A digital platform where goods or services are sold through bidding, allowing users to submit competitive bids until the auction time expires.

Independent E-marketplaces

Online platforms that connect buyers and sellers from various industries, allowing them to conduct transactions without traditional intermediaries.