Reference no: EM131248713
Pronto Pizza is a delivery-only pizza service that promises delivery within 40 minutes of receiving a call for an order or the customer gets $2 off the price. Pronto employs a single pizza maker, paid $10 per hour, who can make, on the average, one pizza every three minutes. This service time has a negative exponential distribution. Pizzas are placed in a large oven with a capacity for 10 pizzas to bake for approximately 12 minutes. The one-way travel time to deliver a pizza in the market area averages 10 minutes, with negative exponential distribution. Calls for pizza average one every five minutes, with negative exponential distribution. Drivers who use their own cars are paid $8 per hour to deliver pizzas to one customer at a time.
Assignments
1. Draw a process flow diagram and identify the bottleneck operation.
2. Calculate the expected waiting time in the order preparation queue using queuing formula I.8 found in Appendix D. Compare this value with your simulation result and comment on any difference.
3. Use the ServiceModel computer simulation software and the Pronto.pkg file to determine the number of drivers that minimizes the total cost of salaries and guarantee discounts.
4. Based on your simulation recommended staffing level, what is the probability of paying off on the guarantee?
5. What do you think of this service guarantee policy?
6. What other design or operating suggestions could improve Pronto Pizza's performance and customer service?
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