Consider the following service process that consists of 3 steps. Each consumer h

Question

Consider the following service process that consists of 3 steps. Each consumer has to go through the process in the given sequence. There is one operator at each step and the processing time for each step is given in the parentheses. 5. Step 1 Step 2 Step 3 (6 minutes) (30 minutes) (10 minutes) Suppose the demand rate is 10 consumers per hour. What will be customer's cycle time? A. 6 minutes B. 30 minutes C. 10 minutes D. 46 minutes E. None of the above MGO304 Service Operations Management, Spring 2018 Page 2

Explanation / Answer

Option (B) is the right answer.

Because the step 2 is the bottleneck of the entire operation by taking 30 minutes. Demand rate is 10 consumers per hour. So only one customer can be fulfilled with this setup.

Cycle time is the period required to complete one cycle of the operation.

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