What is the maximum throughput

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Reference no: EM132701113

Scenario: A small diner is open for lunch each day. The lunch counter seats a maximum of 12 customers at one time. The average time required for a customer to complete lunch is a total of 30 minutes, including the time to be served and the time for the meal to be cooked. It takes 4 minutes of the server's time to take care of a customer (taking their order, bringing out the food, and cleaning up afterwards.) There are two servers assigned to the counter. The cook in the kitchen can prepare an order in 1.5 minutes. Answer the following questions, assuming that the diner is relatively full and operating normally (i.e., it is not at the start-up time.)

a. On average, each customer pays the diner $10 per meal, with a variable cost to the diner of $3 per meal. What is the maximum throughput (production capacity, measured in dollars per hour) of the diner?

Reference no: EM132701113

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