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Question: A barbershop has the following demand for haircuts on Saturday, which is its busiest day of the week.
a. What is the average demand for haircuts on Saturday?
b. If the capacity is 35 haircuts, what is the average utilization of the shop?
c. If capacity is 35 haircuts, how much of a capacity cushion does it have?
d. If it costs $50 per lost haircut due to customer dissatisfaction and $100 for each unit of capacity provided, how much capacity should be built to minimize costs?
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A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..
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