Kitty Wonderland (KW) makes toys for cats. KWĂ˘â‚¬â„˘s managers have recently learned that they can calculate the average waiting time for an order from the time an order is received and the time it is manufactured. They have asked for your help and have provided the following information.
- Expected number of orders for the product: 2,000
- Manufacturing time per order: 4 hours
- Annual machine capacity in hours: 10,000
After learning about the average waiting time, KWĂ˘â‚¬â„˘s managers are confused. They do not understand why, if annual machine capacity is greater than the average number of orders for the product, there would be any waiting time at all.
PLEASE DON’T PROVIDE THE SAME ANSWERS WHICH IS ALREADY IN THE CHEGG
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Briefly answer the following questions (and then respond to at least two of your classmates):
- Calculate the average waiting time per order.
- The managers have asked for your suggestions on what they can do to minimize or eliminate waiting time. How would you respond?
- Management is expecting sales to increase. Will average waiting time increase or decrease? Explain briefly.