Relationship between the rate of service utilization


Assignment:

A Japanese fast food restaurant, OiShi is concerned about its ability to provide quality service as they continue to grow and attract more customers. Its management has collected data from Friday and Saturday nights, its busiest times of the week. During these nights, about 75 customers arrive per hour for service. Given the number of tables and chairs, and the typical time it takes to serve a customer, the restaurant can serve on average about 100 customers per hour.

Figure: Relationship Between the Rate of Service Utilization (r) and service quality

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The management anticipates that the restaurant's demand will double in one year as long as it can provide good service to its customers. How much will the restaurant have to increase its service capacity to stay out of the critical zone?

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Business Management: Relationship between the rate of service utilization
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