Submarine Sandwich and Good Business Venture

Topics: Submarine sandwich, Ciabatta, Sandwiches Pages: 2 (599 words) Published: December 19, 2012
Operations Optional Exam

Devoreaux Walton

Honor Code:
“I pledge my honor that I have not violated the Olin School Honor Code during this examination. I have completed this exam individually and have not and will not discuss it with anyone. I have not used any external materials, texts, the Internet or any other sources of information other than my course materials.”

1. Assuming each order is one sub per order, the average time to fill a rush order can be determined by cycle time. Cycle time measures the average time a job is in the system. By adding the service times together for all the jobs 1+4+1+8+3+7= 24 then you add the number of jobs which is 6. By dividing 24 / 6 you get 4. Four minutes is the average time it takes to fill a rush order for one sub sandwich. 2. To determine how many orders can be filled in a four-hour night, first we get capacity. Capacity is determined by the bottleneck resource. The bottleneck in this process is 1/8 or the time that a sandwich spends baking. To get the number of sandwiches they can make in four hours, we multiply 60 * 4 because there are 60 minutes in one hour. Since 60 * 4 = 240 we then multiply 240 * (1/8) = 30. Therefore they can make 30 sub sandwiches in a four-hour period. 3. Harry is not able to change the capacity of the system. The capacity is determined by the bottleneck station, which is the oven baking. The bottleneck is the process that takes the longest. Since the oven will be unchanged and still take 8 minutes, the capacity does not change and remains at 1/8. 4. The number of orders is not enough information to determine if this is a good business venture or not. I would also need to know the following: the cost of the food supplies, the cost of the facility, the cost of the equipment, how long the equipment will last, the price they are charging for sandwiches,...
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