1. What is inventory in business processes? Provide two different production strategies on how inventory is managed. Discuss the advantage and disadvantage of inventory in business processes.
2. UBurger is a fastfood restaurant whose windows announce its focus on burgers, fries, and shakes. After perhaps queueing, customers place an order with and pay a cashier, then await completion of the order. Upon receiving the order, 25% of customers depart, and the remaining 75% proceed to the seating area, where they sit for an average of 40 minutes before departing. The restaurant has 25 seats, and assume that they are fully configurable such that a customer never waits for a seat while one or more seats remain unoccupied.
Assume that each customer orders individually, each orders a burger and fries, 40% order shakes, and that an order is completed sequentially – burger, then fries, then shake. There is a single cashier who can accept an order and payment in 90 seconds on average. 50% of customers order a regular burger, 25% order a Boom Burger, and 25% order a Stunt Double Burger. The burger variations take 3, 4, and 6 minutes, respectively, to cook and assemble. Three workers prepare burgers. One employee prepares fries in batches of 5 orders, and each batch takes 6 minutes on average. To ensure freshness, the employee begins a batch only in the presence of five or more pending orders. Finally, one employee prepares shakes, and each shake takes 3 minutes on average.
a. Draw a process flow diagram of the ordering and dining process, from customer arrival to departure.
b. Assuming 30 customers per hour arrive, complete the process capacities and utilizations for all resources.
3. First Local Bank would like to improve customer service at its drive-in facility by reducing waiting time and transaction times. On the basis of a pilot study, the bank’s process manager estimates the average rate of