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  • Connecticut Tanning Has Two Tanning Beds One Bed Serves The

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    Amit Pandey
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    Connecticut Tanning has two tanning beds. One bed is for regular members only, while the second bed serves walk-in customers on a first-come, first-served basis. The manager has noticed potential walk-in customers often leave if they see someone already waiting. He wonders if adding a third bed would be justified to capture this lost demand, as leasing a bed costs $600 per month but the average net income per customer is $2 for every 10 minutes of tanning. A study was done to simulate arrivals and tanning times over 4 hours to determine how many customers would be lost without the additional bed.

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    Connecticut Tanning has two tanning beds. One bed is for regular members only, while the second bed serves walk-in customers on a first-come, first-served basis. The manager has noticed potential walk-in customers often leave if they see someone already waiting. He wonders if adding a third bed would be justified to capture this lost demand, as leasing a bed costs $600 per month but the average net income per customer is $2 for every 10 minutes of tanning. A study was done to simulate arrivals and tanning times over 4 hours to determine how many customers would be lost without the additional bed.

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    71 views1 page

    Connecticut Tanning Has Two Tanning Beds One Bed Serves The

    Uploaded by

    Amit Pandey
    Connecticut Tanning has two tanning beds. One bed is for regular members only, while the second bed serves walk-in customers on a first-come, first-served basis. The manager has noticed potential walk-in customers often leave if they see someone already waiting. He wonders if adding a third bed would be justified to capture this lost demand, as leasing a bed costs $600 per month but the average net income per customer is $2 for every 10 minutes of tanning. A study was done to simulate arrivals and tanning times over 4 hours to determine how many customers would be lost without the additional bed.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Solved: Connecticut Tanning has two tanning beds One

    bed serves the

    Connecticut Tanning has two tanning beds. One bed serves the company’s regular members
    exclusively. The second bed serves strictly walk- in customers ( those without appointments) on
    a first- come, first- served basis. Orv karan, the store manager, has noticed on several
    occasions during the busy 5 hours of the day ( 2: 00 p. m. until 7: 00 p. m.) that potential walk-in
    customers will most often walk away from the store if they see one person already waiting for
    the second bed. He wonders if capturing this lost demand would justify adding a third bed.
    Leasing and maintaining a tanning bed costs Connecticut Tanning $ 600 per month. The price
    paid per customer varies according to the time in the bed, but Orv has calculated the average
    net income for every 10 minutes of tanning time to be $ 2. A study of the pattern of arrivals
    during the busy hours and the time spent tanning has revealed the following:

    a) Simulate 4 hours of operation (arrivals over 4 hours). Use the 14th column of Table F. 4 (p.
    785) for arrival times and the 8th column for tanning times. Assume there is one person who
    has just entered the bed at 2: 00 p. m. for a 20- minute tan. Indicate which customers balk at
    waiting for the bed to become available. How many customers were lost over the 4 hours?
    b) If the store is open an average of 24 days a month, will capturing all lost sales justify adding a
    new tanningbed?

    ANSWER
    https://solvedquest.com/connecticut-tanning-has-two-tanning-beds-one-bed-serves-the/

    Reach out to freelance2040@yahoo.com for enquiry.


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