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linda_us, Master's Degree
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Katie Posh Runs A Nail Salon.The Service Process Includes Activites

Customer Question

Below are questions I would like answers too. I tried them myself, with little success. If you could, could you please provide a simple explanation as well as to how you came do the answer. Thank you.

Module1 -


Katie Posh runs an upscale nail salon.The service process includes five activities that
are conducted in the sequence described below.(The time required for each activity is shown in parentheses):

Activity1: Welcome guest.(1minute)
Activity2: Clip and file nails.(3minutes)
Activity4: Dry.(10minutes)
Activity5:Checkout thecustomer.(4minutes)
Three servers(S1,S2,andS3)offer the services in worker-­-paced line.The assignment of tasks to servers is the following:
S1 does Activity1.
S2 does Activities 2 and 3.
S3 does Activities 4 and 5.
The drying process does not require server3’s constant attention; she/he needs to only escort the customer to the salon’s drying chair (equipped with fans for drying).
The time to do this is negligible.There exists only one drying chair in the salon.
PN1.Which resource is the bottleneck of the process?
PN2.What is the utilization ofserver2? Assume that there is unlimited demand and that
The process only admits customers at the rate of the bottleneck.

PN3.What is the average labor utilization of the servers? Assume that there is unlimited demand and that the process only admits customers at the rate of the bottleneck.
PN4.Assumewagerateof $12perhour.What are the direct labor costs for one customer?


BN1.Butternut is ski resort in Massachusetts .One of their triple chair lifts unloads 1296 skiers per hour at the top of the slope.(A triple chairlift can carry three passengers per chair.)The ride from the bottom to the top takes 5 minutes. How many skiers are riding on the lift at any one time?


TechCompany is medium-­sized consumer electronics retailer. The company reported $155,000,000 in revenues for 200 and $110,050,000 in Costs of Goods Sold (COGS).In the same year,TechCo.held an average of $20,000,000 in inventory.

TC1. How many times did TechCo.turn its inventory in 2007?
TC2.Inventory cost at 35 percent per year. What is the per unit inventory cost for an MP3 player sold at $50? Assume that the margin corresponds to the retailer’s average margin.


The Gamer Company is a video game production company that specializes in educational video games for kids.The company’s R&D department is always looking for great ideas for new games. On average, the R&D department generates about 25 new ideas a week.To go from idea
To approved product, the idea must pass through the following stages: paper screening(a 1-­-page document describing the idea and giving rough sketch of the design),prototype development,testing, and focus group. At the end of each stage,successful ideas enter the next stage. All other ideas are dropped. The following chart depicts this process, and the probability of succeeding at each stage.

Paper Screening
Design & Development
Focus Group
Final Destination

The paper screening for each idea takes 2 hours of a staff member’s time. After that, there is a
Stage of designing and producing a prototype. A designer spends 4 hours designing the game in\ a computer--‐aided--‐design (CAD) package. The actual creation of the mock--‐up is outsourced to one Of many suppliers with essentially limitless capacity.
It takes 4daystoget the prototype programmed, and multiple prototypes can be created simultaneously.
A staff member of the testing team needs 2 days to test an idea.
Running the focus group takes 2 hours of a staff member’s time per idea, and only one game is tested in each focus group.Finally,the management
Team meets for 3hours per idea To decide if the game should go into production.

Available working hours for each staff member are 8hours per day, 5days week.The current
Staffing plan is as follows:

A.Paperscreening: 3staffmembers.
B.Design and Production: 4 staff members.
CTesting:6 staff members.
E.Final Decision:1management team.

GC1.How many new ideas would GamerCo. Approve for production per week if it
Had unlimited capacity(staff) in its R&D process?
Staffing plan?
GC3.With the current
Staffing plan,how many new ideas will be put into production per week?
Submitted: 2 years ago.
Category: Business and Finance Homework

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