Carbon Bike Frames operates an expensive wind tunnel facility near San Diego to test bicycle fittings for cyclists. On a typical day when the wind tunnel is in use, they conduct 7 new fittings. The maximum capacity of the wind tunnel is 24 fittings per day since it can be used 24 hours in a working day.
Tasty Taco's taco assembly process takes 563 seconds total per taco. During the lunch hour they need to make 120 tacos.
LastBus Inc. operates buses between Philadelphia and New York City with 2 buses that each carry 40 passengers. They serve over 500,000 customers per year and currently have a return on invested capital of 0.05. They would break even
Carbon Bike Frames operates an expensive wind tunnel facility near San Diego to test bicycle fittings for cyclists. On a typical day when the wind tunnel is in use, they conduct 7 new fittings. The maximum capacity of the wind tunnel is 24 fittings per day since it can be used 24 hours in a working day.
Tasty Taco's taco assembly process takes 563 seconds total per taco. During the lunch hour they need to make 120 tacos.
LastBus Inc. operates buses between Philadelphia and New York City with 2 buses that each carry 40 passengers. They serve over 500,000 customers per year and currently have a return on invested capital of 0.05. They would break even
Wlnd 1unnel 1esLlng - Carbon 8lke lrames As an equlpmenL provlder for several Clymplc cycllsLs, Carbon 8lke lrames (C8l) operaLes a very expenslve wlnd Lunnel faclllLy near San ulego, CA. 1he wlnd Lunnel ls used Lo flnd Lhe besL compromlse beLween ergonomlcs and aerodynamlcs for Lhe cycllsL. resenLly, more and more cycllsLs are lnLeresLed ln C8l's servlces, so Lhe company conslders bulldlng a second faclllLy. Powever, glven Lhe enormous cosLs of Lhe wlnd Lunnel, Lhey also wanL Lo explore a more effecLlve use of Lhe currenL faclllLy. An lnlLlal daLa collecLlon reveals LhaL: - 1he sLandard flLLlng Llme for a cycllsL ls 2h. Cn average, Lhe wlnd Lunnel ls used for 7 flLLlng procedures per worklng day (new cusLomers or cusLomers who wanL a reflL). 1he wlnd Lunnel ls avallable 24 hours per worklng day. - C8l offers a free second sesslon should Lhe cusLomer noL be enLlrely saLlsfled wlLh Lhelr blke flL (lnLernally also known as rework sesslons"). AbouL 2 ouL of 3 cusLomers come back for such a reflL," whlch Lakes Lhe same amounL of Llme as Lhe lnlLlal flL. - 20 mlnuLes of Lhe each flLLlng procedure ls spenL on seLLlng up Lhe blke on a sLaLlonary Lralner and geLLlng Lhe aLhleLe ready. AlmosL all of Lhls could happen ouLslde Lhe wlnd Lunnel, l.e. whlle anoLher flLLlng procedure ls sLlll golng on. - AbouL one day ouL of 10, Lhe wlnd Lunnel ls down for malnLenance or repalr. <>!?= Pow many new flLs are conducLed on a Lyplcal day when Lhe wlnd Lunnel ls ln use (assume Lhe wlnd Lunnel ls open LhaL day)? <>!0= WhaL ls Lhe CLL of Lhe wlnd Lunnel? 8ecall LhaL Lhe wlnd Lunnel can be used 24h ln a worklng day.
1asLy 1lm's 1asLy 1lm's ls a speclalLy Laco resLauranL. 1he followlng Lasks are requlred for Lhe successful assembly of a 1asLy Laco (Llmes are ln seconds per Laco): Chop and Lrlm meaL - 30 Chop vegeLables - 20 Crlll meaL - 240 Crlll vegeLables - 180 repare Lopplngs 2 LeLLuce - 10 1omaLo - 13 Cuacamole - 40 Assemble Laco Add meaL - 3 Add vegeLables - 3 Add cheese - 3 Add Lopplngs - 10 Wrap Laco - 20
uurlng Lhe lunch hour, 1asLy 1lm's encounLers demand for 120 Lacos. @@?= WhaL ls Lhe labor conLenL of one of 1asLy 1lm's Lacos? @@0= WhaL ls Lhe LakL Llme for 1asLy 1lm's Laco shop? @@A= Pow many workers should 1lm hlre Lo make Lacos? lgnore any effecLs of ldle Llme or lnefflclency due Lo poor llne balanclng. @@B= uurlng off-peak afLernoon hours, demand aL 1asLy 1lm's drops Lo 40 Lacos each hour. Pow many employees should 1lm schedule Lo work durlng Lhe afLernoon? Agaln, lgnore any effecLs of ldle Llme or lnefflclency due Lo poor llne balanclng.
lasL8us lnc. lasL8us lnc. offers low-cosL bus LransporLaLlon beLween hlladelphla and new ?ork ClLy. 1he company has 2 buses, each boughL for $300,000. Lach bus can carry 40 passengers per Lrlp and does 7 dally round Lrlps beLween hlladelphla and new ?ork ClLy. 1he prlce of each one-way LlckeL ls $12. 1he company sells 28 seaLs on average per one-way Lrlp, so Lhe load facLor ls 70. 1he annual flxed cosL of runnlng Lhe company ls $3,000,000. 1he ma[or varlable cosL ln Lhelr llne of buslness ls gasollne, whlch cosLs $23 per one-way Lrlp. lasL 8us lnc. buses operaLe 363 days a year. ueflne Lhe reLurn on lnvesLed caplLal as Lhe raLlo of Lhe proflLs (L8 ?LA8) and Lhe lnvesLed caplLal. ?ou can draw an 8ClC Lree ln Lhe same way LhaL we drew a kl Lree ln class. Slmply have Lhe 8ClC as Lhe rooL" of Lhe Lree lnsLead of proflLs. 1hen answer Lhe followlng quesLlons:
!>?= WhaL ls Lhe currenL number of cusLomers LhaL are served each year? Assume LhaL lasL8us operaLes 363 days per day and LhaL each cusLomer buys only one one-way LlckeL per person. 3 !>0= WhaL ls Lhe currenL 8ClC? (lease glve your answer ln declmal form. lor example, 0.23 for 23) !>A= WhaL ls Lhe mlnlmum load facLor aL whlch Lhe company breaks even? (lease glve your answer ln declmal form. lor example, 0.23 for 23)