Reference no: EM132254952

Electronics City

Mr.and Mrs. Jack Sear own and operate Electronics City, a small electronics store. Jack Sear worked in the store as a child and while in college. Afterwards, he slowly took over the business from his parents as they retired and moved to Florida. Jack, his wife, Harriett, their three children, one full-time, and one part-time employee run the business.

The store carries a large assortment of electronic parts, small electronic gadgets, cell phones, and computer tablets. Most of the year, during the week, it is rather quiet.

Except during the three nights they are open and on Saturday, in which there is a steady stream of customers. At those busy times, everyone works, Jack, Harriet, the three children, the full-time employee and the part-time employee. The store is open 6 days a week, except Mondays. During the Christmas season, from Thanksgiving weekend until Christmas, records show that they average a total of 12,000 customers.

However, during the Thanksgiving weekend and especially black Friday morning puts tremendous pressure on them as long lines occur. As a result, the store has a small, but, bad reputation in terms of service. Over the Thanksgiving weekend (Friday, Saturday and Sunday), they average about 25% of their Christmas customers.

Each day over the Thanksgiving weekend the store is open 14 hours. Previous records show that 30% of the time customers bought one item, 20% of the time bought two items, 25% of the time bought three items, 20% of the time bought four items and 5% of the time bought five items. Further, Friday morning from 8am and noon, their total volume per hour is double the average hourly volume of those three days.

The store has one electronic cash register which everyone is capable of using. Customers pay either by cash, credit or check. Store records indicated that about 35% are cash customers, 60% paid by credit card and 5% by check. The entire checkout process consists of bagging the items and receiving payment:

1. Keying in each item (Time required : 0.2 min per item)

2. Bagging items and receiving payment:

a. Cash customers (Time: 0.6 min per customer)

b. Credit card customers (Time: 1.0 min per customer)

c. Check cards customers (Time: 3.0 min per customer).

Write a managerial report that addresses: what is the capacity of the store, in customers per hour; the average hourly demand during the Thanksgiving weekend and Friday morning, and; provide suggestions to the Sear family on what to do.