Reference no: EM132676998

Ethical Deli - This is a process analysis problem.

Ethical Deli is a small deli that specializes in ethically produced meats and cheeses. Customers enter the shop, wait in line at the deli counter (if necessary), order from the deli counter, wait in line at the cashier (if necessary), pay for their items, and then leave. On average, customers require 1 minute to be served at the deli counter, and 45 seconds to pay for their items. The average customer spends 3 minutes waiting at the deli counter and 2 minutes waiting for the cashier.

Ethical Deli faces a steady arrival rate of 40 customers per hour. Assume that no time is spent in the deli other than the four activities outlined above.

(a) On average, how many customers are in Ethical Deli at any point in time?

(b) Due to the COVID-19 pandemic, state authorities have set a limit of 6 people as the maximum number of customers who can be inside Ethical Deli at any point in time. What can you say (qualitatively) about whether the deli will need to prepare for customers to wait outside the premises?

c) Ethical Deli buys ham from a local hog farm that follows sustainable business practices. The farm charges $50.00 for every delivery made by their electric delivery truck. Ethical Deli stores purchased ham in their walk-in refrigerator at an estimated cost of $0.50 per pound per week. The deli is open 8:00 AM - 6:00 PM Monday-Saturday (they are closed on Sunday). Assume customers who buy ham buy an average of 1.25 pounds, and 60% of customers buy ham. How much ham should Ethical Deli buy from the hog farm each time they make a purchase (assume there's no worry of product spoilage).