library-like

Most of the year was “library-like” in the Textbook Department, according to Marilyn Copp, the department manager.  But the two weeks after Labor Day and the second two weeks of January were quite the opposite. She explained: “Semester start-ups put enormous pressure on us.  Last semester, in the twelve 9 a.m. to 9 p.m. workdays of those two weeks, we served 21,600 customers.  I must admit, we didn’t serve them all as well as I’d have liked.  I am hoping to do much better in January.”

A study done this past fall shows that we can expect 10% of our early semester customers to buy one book, 20% to buy two, 25% to buy three, 30% to buy four, and 15% to buy five books.  Customers who come in can ask for help at the information desk, but the shelf areas for the many schools, departments, and courses are clearly marked, so customers help themselves.  Then they come to the cash registers to check out.  That is where the most pressure is felt.

The checkout counter has four electronic registers. Each cashier’s tasks include:

Keying into the register an inventory code number and a price for each book (Time required: 0.1 minutes per book);

Bagging books and receiving payment either by

•Collecting cash and making change (Time:  0.4 minutes per customer),

•Waiting while the customer writes a check, then taking down the customer’s identification data (Time:  1.2 minutes per customer), or

•Running a credit card through the register’s automatic approval device, filling out a charge slip while waiting for an approval code, getting the customer’s signature, and returning the card (Time:  1.0 minute per customer).

• 

Store records indicate that about 40% of textbook customers pay cash, 40% pay by check, and 20% pay by credit card.

Demand during the first two weeks was fairly level, except during the first two days.  Ms. Copp estimated that the first two days were by far the busiest, with their total volume per day double the average daily volume of the twelve-day period.  The busiest hours on those peak days were between noon and 4 p.m., when students came to buy books just after attending their first classes.  Ms. Copp said that customer arrivals during those peak hours ran at three times the average rate over the twelve days.  “That’s when the department gets its reputation for poor service,” she remarked.  “Those two afternoons each year can make or break my career with this company.  This January, I want to manage them much better than I did last fall.  Can you help?

Questions (Provide your answers on following slides)

1.What is the capacity of the bookstore checkout stations in customers per hour?

2.What is the pattern of demand during the first two weeks of the semester (in customers per hour)?

3.At what times is the bookstore’s capacity unable to meet demand?

4.What should the manager at the bookstore do to balance capacity and demand?

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