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Matching Supply and Demand

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Matching Supply and Demand
Chapter 3: Process analysis

COMFY SHOES INC
Comfy Shoes Inc builds shoes tailored to meet each individual customer’s needs. Customers who visit the downtown offices of Comfy Shoes in Philadelphia can choose one or more of the following four custom-tailoring services. Customers receive their shoes in the mail within a week of their initial visit.

Service Description Time Resource used
A. Walking Basics Take measurements for basic walking shoes. 12 min. 1 attendant
B. Walking Plus Choose specific design (e.g. material, color selection) 12 min. 1 attendant
C. Running Basics Take measurements for tailor-made running shoes 10 min. 1 attendant
D. Running Adv Consult physical therapist and obtain precise needs for running shoes. Also choose specific design. 40 min. 1 attendant

The company offers the following packages to their customers:

1. Package 1: Includes only Walking Basics (Service A)
2. Package 2: Includes Walking Basics and Walking Plus (Services A and B).
3. Package 3: Walking Basics, Walking Plus and Running Basics (Services A, B and C).
4. Package 4: All four services (A, B, C, and D)

Customers of Comfy Shoes visit the store at a constant rate (you can ignore any effects of variability) of 20 customers per day. Of these customers, 45% buy Package 1, 10% buy Package 2, 20% buy Package 3 and 25% buy Package 4. The mix does not change over the course of the day. The store operates 12 hours a day.

What is the implied utilization of the attendant in service D?
The calculations are summarized below:

Package 1 2 3 4 Total Utilization
Task Time(min) # workers Avail. Cap. 0.45 0.10 0.20 0.25
A. Walking Basics 12 1 60 9 2 4 5 20 0.33
B. Walking Plus 12 1 60 2 4 5 11 0.183
C. Running Basics 10 1 60 3.33 4.166 7.5 0.125
D. Running Adv 40 1 60 16.66 16.66 0.278

Service D has an implied utilization of 28%

Which resource has the highest implied utilization?

Service A (Walking

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