Ops_571

Learning curve is a line displaying the correlation among time to produce a unit and the collective number of units produced. Learning curve theory has a wide range of functions in the business world. Learning curves can be applied to individuals or organizations. (Chase, 2006). Learning curve theory is based on three assumptions:1- The amount of time required to complete a given task or unit of a product will be less each time the task is undertaken 2- The unit time will decrease at a decreasing rate 3- Decrease in time will pursue expected trend. (Chase, 2006). Looking at the simulation for this week's assignment, the Pizza shop is facing challenges in serving their clients within acceptable time. Long lines could possibly cost the Pizza shop to lose their existing clients as well as face difficulty attracting new clients. The simulation shows four tables having the highest utilization at 98.5% and 37 groups of four balked or left the restaurants without being asked. To address this issue, the distribution of tables were changed and a priority rule was put in place. The priority rule adjusted the utilization of the tables for four to 93.5% and the utilization for the tables for two was adjusted to 92.95%. The average waiting changed to 5:45 minutes and the average queue length changed to 2.52 and the profits earned were $1,493. This is the most favorable solution as the waiting time has reduced significantly, profit has increased and the utilization of all the service team didn’t increase. The lost sales amount also reduced to $450. The owner is pleased with the performance the fact that no changes were made to the service team and the kitchen team. .