Chapter 1: Q5-10OQ (page 126)

Owners of a local restaurants are concerned about their ability to provide quality service as they continue to grow and attract more customers. They have collected data from Friday and Saturday nights, their busiest times of the week. During these time periods, about 75 customers arrive per hour for service. Given the number of tables and chairs, and the typical time it takes to serve a customer, the owners estimate they can serve on average about 100 customers per hour. During these nights, are they in the zone of service, the critical zone, or the zone of no service?

Expert verified

It is a critical zone.

Step by step solution

Capacity utilization is referred to as the range to which a production unit or nation uses its manufacturing capabilities to manufacture a product.

Given: Arrival rate = 75

Service rate = 100

Using the formula:

Capacity Utilization = Arrival rate/ Service rate

= 75/100

In percentage = 75%

The critical zone of service is from 75-to 100%. Since Capacity utilization is just below 75%, it is in the zone of service.

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	Job and Description	Immediate Predecessors	Time (Hours)
A	Start	_	0
B	Get computer printouts of customer purchases	A	10
C	Get stock records for the month	A	20
D	Reconcile purchase printouts and stock records	B, C	30
E	Total stock records by department	B, C	20
F	Determine reorder quantities for coming period	E	40
G	Prepare stock reports for purchasing agents	D,F	20
H	Finish	G	0