Norton\'s Convenience store has a variable demand. The daily demand ranges from

Question

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?

Explanation / Answer

a. Waiting minutes = [300 × (2)2] / {2 × [720 minutes per day - (300 × 2)]} = 5 minutes

b. Cycle time = waiting time + processing time = 5 + 2 = 7 minutes

c. Waiting minutes = [300× (2)2] / {2 × [900 minutes per day - 300 × 2)]} = 2 minutes

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