Essay About Checkout System And Pantry Shopper

Pantry Shopper – a Supermarket in Philadelphia
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Pantry Shopper is a supermarket in Philadelphia, where competition among supermarkets is fierce. Pantry Shopper management feels that because prices are so competitive, shoppers will choose one supermarket over another due to the services offered. Beth Smith-Danto, a new manager of Pantry Shopper, felt that by providing shoppers with faster, more efficient service, she might be able to improve the stores competitive position and market share.The following changes are; Moving check approval from the main desk to the cash registerIncreasing the limit on cash back from checks from $20 to $50 above the purchase amount. Instituting a delivery service to make shopping more convenient, especially for senior citizensProblemsBeth had not changed the checkout system. The last major remodeling of the checkout system occurred in 1982.The demand at the store has increased and the technology of the cash registers has changed.ObjectivesRedesigning the checkout system Use store square footage efficiently To design the system for peak usage but does not want to over design the system Collected Data Customers arrived at the checkout at a rate of approximately 100 per hour. 20 % of the customers had 10 items or less and took about 2 minutes to serve on average 80% of the customers had more than 10 items took about 4 minutes to process Queuing Diagram[pic 1]Model AnalysisCustomer arrival rate       →         Poisson DistributionService time rate               →         Exponential distributionTherefore, the model that will fit in is M/M/S model.Express Lane Analysis[pic 2]Normal Lane Analysis[pic 3]Cost AnalysisTotal cost                  = Total service cost + total waiting cost (in system)                         = (S x Cs ) + (L x Cw) Assume :          Cost of waiting = 12 dollars/hour        = 0.200 dollars/minute                 Cost of service = 10 dollar/hour        = 0.167 dollars/minute[pic 4]When         S         = Number of channels                        L          = Average number of customer in the system                Cs        = Cost of providing service per server per minute