Question

QUESTION 1

1. CC Car Wash specializes in car cleaning services. The services offered by the company, the exact service time, and the resources needed for each of them are described in the table following:

   Service	Description	Processing Time	Resource
   A. Wash	Exterior car washing and drying	10 minutes	1 automated washing machine
   B. Wax	Exterior car waxing	15 minutes	1 automated waxing machine
   C. Wheel Cleaning	Detailed cleaning of all wheels	16 minutes	1 employee
   D. Interior Cleaning	Detailed cleaning inside the car	20 minutes	1 employee

   The company offers the following packages to their customers:

   • Package 1: Includes only car wash (service A).

   • Package 2: Includes car wash and waxing (services A and B).

   • Package 3: Car wash, waxing, and wheel cleaning (services A, B, and C).

   • Package 4: All four services (A, B, C, and D).

   Customers of CC Car Wash visit the station at a constant rate (you can ignore any effects of variability) of 50 customers per day. Of these customers, 30 percent buy Package 1, 30 percent buy Package 2, 15 percent buy Package 3, and 25 percent buy Package 4. The mix does not change over the course of the day. The store operates 10 hours a day.

For the next summer, CC Car Wash anticipates an increase in the demand to 80 customers per day. Together with this demand increase, there is expected to be a change in the mix of packages demanded: 40 percent of the customers ask for Package 1, 30 percent for Package 2, 20 percent for Package 3, and 10 percent for Package 4. The company will install an additional washing machine to do service A. Answer the following questions based on this new situation.

f. What is the implied utilization rate for the employee at service C (wheel cleaning)? Round your answer to the nearest whole number and ignore the percentage sign. For example, if your answer is 0.45 or 45%, fill in 45; if your answer is 0.76 or 76%, fill in 76.

Your answer is .

Answer 1

Maximum capacity of a station = (60/ time per customer)* number of hours in a day

Daily Capacity of stations

A = (60/10)*10=60

B= (60/15)*10=40

C= (60/16)*10 = 37.5

D= (60/20)*10 =30

With the changed situation, the total number of customers are 80.

Customers who avail service A = All customers = 80 per day

Customers who avail service B = 60% customers = 80*0.6 =48 per day

Customers who avail service C = 30% customers = 80*0.3 =24 per day

Customers who avail service D = 10% customers = 80*0.1=8 per day

Implied utilisation of C = used capacity / total capacity = 24/37.5 = 0.64 =64%