Norton's Convenience Store Has a Variable Demand

question 76

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.Norton has decided that the waiting time is too long and has increased the hours the store is open to 15 hours. What is the waiting time now?

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Definitions:

Due Date

The specified date by which a payment must be made, or a task must be completed.

Cash Discount

An incentive offered for the early payment of an invoice or bill, reducing the amount owed.

Complement Rate

The percentage subtracted from 100% to find the remaining portion of a rate, often used in insurance and finance to determine net rates.

Discount Date

The date on which a bill of exchange or other payment instrument is discounted, meaning it is computed for present value before its maturity date.