Question

A hotel provides room service for its guests. The process for room service begins with a room service manager who takes orders by phone at an average of 2 minutes per order. The manger then send the order to the kitchen, where it takes a cook an average of 16 minutes to prepare the food for each order. There are four cooks in the kitchen. The room service manager also sends the beverage included in the order to the bar at the same time the order is sent to the kitchen (that is, parallel processes). It takes 3 minutes for a bartender to fill the order. When the kitchen and bar orders are both ready. A waiter takes them to the room and bills the guest. There are six waiters to provide the service, and each order takes 20 minutes for the waiter to complete.
Required:
a. What is the capacity of the process, and what is the bottleneck?
b. What is the throughput time of a typical order?
c. Assume that on Friday evenings an average of 10 room-service orders per hour are placed. How many orders are in the system on average on Friday nights?
d. Assume the following pay rates for the employees. Waiters are paid $6 per hour (not including tips), cooks are paid $10 per hour, the bartender is paid $7 per hour, and the room service manager is paid $12 per hour. Also assume that 60 percent overhead is added to direct labor and that the cost of food and beverages averages $6 per order.

Answer 1

a. Capacity of each resource

Service manager capacity=60/2 minutes per order

Service manager capacity=30 orders per hour

Each chef capacity= 60/16 minutes per order

Each chef capacity= 3.75 orders per hour

4 chefs capacity= 4 ×3.75

4 chefs capacity= 15 orders per hour

Bartender capacity= 60/ 3 minutes

Bartender capacity=20 orders per hour

Each waiter capacity=60/20 minutes

Each waiter capacity=3 orders per hour

6 waiters capacity=6×3

6 waiters capacity=18 orders per hour

Based on the above calculation we can see that the minimum capacity will be the kitchen as the kitchen can only   handle  capacity of 15 orders per hour, which therefore means that the Bottleneck is the Kitchen .

b. Throughput time = 2 + 16 + 20

Throughput time  = 38 minutes

c. Orders that are in the system on average on Friday nights

Using this formula

I = T ×R

Let plug in the formula

I= 10 ×38/60

I = 6.33 orders

d. The total labor costs

Waiters= 6 x 9 = 54

Cooks=4 x 15 = 60

Bartender=1 x 10= 10

Manager=1 x 18= 18

Total Labor=$142

Overhead is added= 142 + 142 × .60

Overhead is added= 227.20

Labor cost per order at 10 orders per hour=227.20/10

Labor cost per order at 10 orders per hour=$22.70 per order

Average cost per order=22.70 + $6

Average cost per order= $28.70

Minimum cost per order

Labor cost per order at 15 orders per hour=227.2/15

Labor cost per order at 15 orders per hour= $15.15

Minimum cost per order =$15.15+$6

Minimum cost per order =$21.15

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