Owners of a local restaurant are concerned about their ability to provide quality service as they continue to grow and attract more customers. They have collected data from Friday and Saturday nights, their busiest times of the week. During these time periods, about 106 customers arrive per hour for service. Given the number of tables and chairs, and the typical time it takes to serve a customer, the owners estimate they can serve, on average, about 162 customers per hour. Use Exhibit 4.6. Furthermore, the owners anticipate that in one year their demand will double as long as they can provide good service to their customers. a. Currently, during these nights, are they in the zone of service, the critical zone, or the zone of nonservice? EXIBIT IS THE PICTURE ADDED O Critical zone O Zone of service O Zone of nonservice b. Next year, after demand doubles, what must the service capacity increase to (at minimum) to stay out of the critical zone?Note: Round up your answer to the next nearest whole number.

MARKETING 2018
19th Edition
ISBN:9780357033753
Author:Pride
Publisher:Pride
Chapter1: An Overview Of Strategic Marketing
Section1.2: Dollar Shave Club: The Company For Men
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Owners of a local restaurant are concerned about their ability to provide quality service as they continue to grow and attract more customers. They have collected data from Friday and Saturday nights, their busiest times of the week. During these time periods, about 106 customers arrive per hour for service. Given the number of tables and chairs, and the typical time it takes to serve a customer, the owners estimate they can serve, on average, about 162 customers per hour. Use Exhibit 4.6. Furthermore, the owners anticipate that in one year their demand will double as long as they can provide good service to their customers. 
a. Currently, during these nights, are they in the zone of service, the critical zone, or the zone of nonservice? EXIBIT IS THE PICTURE ADDED

O Critical zone

O Zone of service

O Zone of nonservice

b. Next year, after demand doubles, what must the service capacity increase to (at minimum) to stay out of the critical zone?Note: Round up your answer to the next nearest whole number.

Relationship between the Rate of Service Utilization (p)
and Service Quality
Mean arrival
rate (2)
1
Zone of nonservice
w<)
Tong
Zone of service
Mean service rate ()
2-100
p=70%
exhibit 4.2
Transcribed Image Text:Relationship between the Rate of Service Utilization (p) and Service Quality Mean arrival rate (2) 1 Zone of nonservice w<) Tong Zone of service Mean service rate () 2-100 p=70% exhibit 4.2
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