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Monique's Gas-n-Go is considered to have a variable demand. The daily demand ranges from 240-300 ...

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Monique's Gas-n-Go is considered to have a variable demand. The daily demand ranges from 240-300 ...

Monique's Gas-n-Go is considered to have a variable demand. The daily demand ranges from 240-300 customers per day, and they each purchase an average of four items. The average daily demand is 270 customers. The convenience store currently operates 12 hours each day and each order takes approximately 2 minutes.

Required
(a) Compute the average waiting time in minutes; (b) compute the cycle time for an order; and, (c) If Monique increased the hours that the store is open per day to 18 hours, how would that effect the average waiting time?
A) 3 minutes / (b) 4 minutes/(c) waiting time will decrease by 1.2 minutes
B) 1 minute / (b) 3 minutes/(c) Waiting time will increase by 1 minute
C) 3 minutes / (b) 5 minutes/(c) Waiting time will decrease by 1 minute
D) 5 minutes / (b) 4 minutes/(c) Waiting time will increase by 1.2 minutes.
E) 2 minutes / (b) 3 minutes/(c) Waiting time will not change.

Textbook

Managerial Accounting: Decision Making and Motivating Performance

Edition: 1^st

Authors: Datar, Rajan

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