OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
7th Edition
ISBN: 9780077835439
Author: Roger G Schroeder, M. Johnny Rungtusanatham, Susan Meyer Goldstein
Publisher: McGraw-Hill Education
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Chapter 11, Problem 3P

A barbershop has the following demand for haircuts on Saturday, which is its busiest day of the week.

Number of Haircuts Probability
20 .1
25 .3
30 .4
35 .1
40 .1
  1. a. What is the average demand for haircuts on Saturday?
  2. b. If the capacity is 35 haircuts, what is the average utilization of the shop?
  3. c. If capacity is 35 haircuts, how much of a capacity cushion does it have?
  4. d. If it costs $50 per lost haircut due to customer dissatisfaction and $100 for each unit of capacity provided, how much capacity should be built to minimize costs?
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Party O 6 3 1 2 3 4 5 6 7 8 9 10 00 Number in Party O 10 3 2 2 2 4 3 2 3 2 4 Arrival Time 7:00 7:02 7:05 7:10 7:12 7:13 7:15 7:22 7:26 7.29 There is a single server that serves the entire customer party, no matter what the size, in the numbe of minutes shown in the table above. How many total customers in line and being served at 7:17am? None of the answers are correct. Service Time (minutes) 6 5 4 6 4 5 4 5 5 4
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