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managerial accountng
Ralphs Convenience store has a variable demand. The daily demand ranges from 135 to 105 customers a day who average purchasi
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Answer #1

1) Store currently opens for 6 hours a day

In 1 hour there are 60 minutes

Daily capacity in minutes= 6 hours*60 minutes= 360 minutes

Processing time per customer= 2 minutes

Daily average demand= 150 customers

Average waiting time= Daily average demand*(Processing time per customer)2/2*(Daily capacity in minutes- (Daily average demand*Processing time per customer))

= 150*(2)2/2*(360-(150*2))

= 150*4/2*(360-300)

= 600/2*60

= 600/120

= 5 minutes

2) Cycle time= Average waiting time+Processing time per customer

= 5+2= 7 minutes

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