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Wharton Coursera Busines Foundations

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Homework Assignment: Module 2 - Process Analysis
Quiz, 10 questions

Question 1
1
point

1. Question 1
Posh Nails

Katie Posh runs an upscale nail salon. The service process includes five activities that are
conducted in the sequence described below. (The time required for each activity is shown in
parentheses):

 Activity 1: Welcome a guest. (1 minute)
 Activity 2: Clip and file nails. (3 minutes)
 Activity 3: Paint. (5 minutes)
 Activity 4: Dry. (10 minutes)
 Activity 5: Check out the customer. (4 minutes)

Three servers (S1, S2, and S3) offer the services in a worker-paced line. The assignment of tasks to
servers is the following: S1 does Activity 1. S2 does Activities 2 and 3. S3 does Activities 4 and 5.
The drying process does not require server 3’s constant attention; she/he needs to only escort the
customer to the salon’s drying chair (equipped with fans for drying). The time to do this is negligible.
There exists only one drying chair in the salon.

Which resource is the bottleneck of the process?



Dryer chair



S1



S2



S3




Schlumberger-Private

, 1
point

2. Question 2
Posh Nails

Katie Posh runs an upscale nail salon. The service process includes five activities that are
conducted in the sequence described below. (The time required for each activity is shown in
parentheses):

 Activity 1: Welcome a guest. (1 minute)
 Activity 2: Clip and file nails. (3 minutes)
 Activity 3: Paint. (5 minutes)
 Activity 4: Dry. (10 minutes)
 Activity 5: Check out the customer. (4 minutes)

Three servers (S1, S2, and S3) offer the services in a worker-paced line. The assignment of tasks to
servers is the following: S1 does Activity 1. S2 does Activities 2 and 3. S3 does Activities 4 and 5.
The drying process does not require server 3’s constant attention; she/he needs to only escort the
customer to the salon’s drying chair (equipped with fans for drying). The time to do this is negligible.
There exists only one drying chair in the salon.

What is the utilization of server 2 (in decimal form)? Assume that there is unlimited demand and that
the process only admits customers at the rate of the bottleneck.

0.8


1
point

3. Question 3
Posh Nails

Katie Posh runs an upscale nail salon. The service process includes five activities that are
conducted in the sequence described below. (The time required for each activity is shown in
parentheses):

 Activity 1: Welcome a guest. (1 minute)
 Activity 2: Clip and file nails. (3 minutes)
 Activity 3: Paint. (5 minutes)
 Activity 4: Dry. (10 minutes)
 Activity 5: Check out the customer. (4 minutes)




Schlumberger-Private

, Three servers (S1, S2, and S3) offer the services in a worker-paced line. The assignment of tasks to
servers is the following: S1 does Activity 1. S2 does Activities 2 and 3. S3 does Activities 4 and 5.
The drying process does not require server 3’s constant attention; she/he needs to only escort the
customer to the salon’s drying chair (equipped with fans for drying). The time to do this is negligible.
There exists only one drying chair in the salon.

What is the average labor utilization of the servers (in decimal form)? Assume that there is unlimited
demand and that the process only admits customers at the rate of the bottleneck.

0.4333


1
point

4. Question 4
Posh Nails

Katie Posh runs an upscale nail salon. The service process includes five activities that are
conducted in the sequence described below. (The time required for each activity is shown in
parentheses):

 Activity 1: Welcome a guest. (1 minute)
 Activity 2: Clip and file nails. (3 minutes)
 Activity 3: Paint. (5 minutes)
 Activity 4: Dry. (10 minutes)
 Activity 5: Check out the customer. (4 minutes)

Three servers (S1, S2, and S3) offer the services in a worker-paced line. The assignment of tasks to
servers is the following: S1 does Activity 1. S2 does Activities 2 and 3. S3 does Activities 4 and 5.
The drying process does not require server 3’s constant attention; she/he needs to only escort the
customer to the salon’s drying chair (equipped with fans for drying). The time to do this is negligible.
There exists only one drying chair in the salon.

Assume a wage rate of $12 per hour. What are the direct labor costs for one customer (in dollars)?

6


1
point

5. Question 5
BN1. Butternut is a ski resort in Massachusetts. One of their triple chair lifts unloads 1296 skiers per
hour at the top of the slope. (A triple chair lift can carry three passengers per chair. Note that each lift




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, contains multiple chairs.) The ride from the bottom to the top takes 5 minutes. On average, how
many skiers are riding on the lift at any one time?

108


1
point

6. Question 6
Tech Company is a medium-sized consumer electronics retailer. The company reported
$155,000,000 in revenues for 2007 and $110,050,000 in Costs of Goods Sold (COGS). In the same
year, Tech Co. held an average of $20,000,000 in inventory.

How many times did Tech Co. turn its inventory in 2007?

5.5026


1
point

7. Question 7
Tech Company is a medium-sized consumer electronics retailer. The company reported
$155,000,000 in revenues for 2007 and $110,050,000 in Costs of Goods Sold (COGS). In the same
year, Tech Co. held an average of $20,000,000 in inventory.

Inventory cost at Tech Co. is 35 percent per year. What is the per unit inventory cost (in dollars) for
an MP3 player sold at $50? Assume that the margin corresponds to the retailer’s average margin.

2.26


1
point

8. Question 8
The Gamer Company is a video game production company that specializes in educational video
games for kids. The company’s R&D department is always looking for great ideas for new games.
On average, the R&D department generates about 25 new ideas a week. To go from idea to
approved product, the idea must pass through the following stages: paper screening (a 1-page
document describing the idea and giving a rough sketch of the design), prototype development,
testing, and a focus group. At the end of each stage, successful ideas enter the next stage. All other
ideas are dropped. The following chart depicts this process, and the probability of succeeding at
each stage.




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