Katie posh runs an upscale nail salon.the service process includes

1.Katie Posh runs an upscale nail salon.The service process includes five activities that 
are conducted in the sequence described below.(The time required for each activity is shown in parentheses):

Activity1: Welcome guest.(1minute)
Activity2: Clip and file nails.(3minutes)
Activity4: Dry.(10minutes)
Activity5:Checkout thecustomer.(4minutes)

Three servers(S1,S2,andS3)offer the services in worker-­-paced line.The assignment of tasks to servers is the following:

S1 does Activity1.
S2 does Activities 2 and 3.
S3 does Activities 4 and 5.

The drying process does not require server3’s constant attention; she/he needs to only escort the customer to the salon’s drying chair (equipped with fans for drying). 
The time to do this is negligible.There exists only one drying chair in the salon.

PN1.Which resource is the bottleneck of the process?

PN2.What is the utilization ofserver2? Assume that there is unlimited demand and that 
The process only admits customers at the rate of the bottleneck.

PN3.What is the average labor utilization of the servers? Assume that there is unlimited demand and that the process only admits customers at the rate of the bottleneck.

PN4.Assumewagerateof $12perhour.What are the direct labor costs for one customer?

2. Butternut

BN1.Butternut is ski resort in Massachusetts .One of their triple chair lifts unloads 1296 skiers per hour at the top of the slope.(A triple chairlift can carry three passengers per chair.)The ride from the bottom to the top takes 5 minutes. How many skiers are riding on the lift at any one time?


TechCompany is medium-­sized consumer electronics retailer. The company reported $155,000,000 in revenues for 200 and $110,050,000 in Costs of Goods Sold (COGS).In the same year,TechCo.held an average of $20,000,000 in inventory.

TC1. How many times did TechCo.turn its inventory in 2007?

TC2.Inventory cost at TechCo.is 35 percent per year. What is the per unit inventory cost for an MP3 player sold at $50? Assume that the margin corresponds to the retailer’s average margin.

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