A Graduate Research Assistant "Moonlights" at the Short Order Counter

question 68

Essay

A graduate research assistant "moonlights" at the short order counter in the student union snack bar in the evenings. He is considering asking for help taking orders, but needs to convince the management that they should hire another student. Because he is taking a simulation class, he thinks it may be the perfect way to convince management to hire more help if he can show that customers have to wait a long time. When a customer arrives, he takes their order and their payment, prepares the food, gives it to the customer, and then takes the order from the next person in line. If someone arrives while he's cooking an order, they have to wait until he's completed the current order. He is working on the simulation and a portion is shown below.
-Complete the table and determine the average customer waiting time and the utilization of the cook.
$$\begin{array} { | c | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Customer } \\\text { Number }\end{array} & \begin{array} { c } \text { Time of } \\\text { Arrival }\end{array} & \begin{array} { c } \text { Time } \\\text { Order } \\\text { Taken }\end{array} & \begin{array} { c } \text { Order } \\\text { Prep } \\\text { Time }\end{array} & \begin{array} { c } \text { Customer } \\\text { Receives } \\\text { Food }\end{array} & \begin{array} { c } \text { Customer } \\\text { Wait } \\\text { Time }\end{array} & \begin{array} { c } \text { Cook } \\\text { "Idle" } \\\text { TIme }\end{array} \\\hline 1 & 2 & 2 & 4 & 6 & 0 & 2 \\\hline 2 & 14 & 14 & 7 & & & \\\hline 3 & 19 & & 6 & & & \\\hline 4 & 28 & & 8 & & & \\\hline 5 & 33 & & 4 & & & \\\hline\end{array}$$
Complete the table and determine the average customer waiting time and the utilization of the cook.

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Definitions:

Target Capital Structure

The ideal mix of debt, preferred stock, and common equity that a company aims to hold in order to minimize its cost of capital and maximize its value.

Floatation Costs

Expenses incurred by a company in issuing new securities, including underwriting fees and registration fees.

WACC

Weighted Average Cost of Capital - a measure of a firm's cost of capital in which each category of capital is proportionately weighted.

WACC

stands for Weighted Average Cost of Capital, which is a calculation of a firm's capital cost from all sources, including equity and debt, weighted accordingly.