Running head: Apply the Learning Curve Theory

Apply the Learning Curve Theory

University of Phoenix

Operations Management

OPS571

Apply the Learning Curve Theory

Introduction

This paper is based on a simulation about a pizza parlor, named Mario’s Pizzeria in Palm Springs, California. Mario’s pizzeria is known for its original taste and fresh ingredients. In an effort to test his grandchild’s management skills, Mario temporarily gives the responsibility of operating the restaurant for two weeks to his grandchild. If his grandchild is successful, the restaurant will be handed over to his grandchild. In this simulation, I will need to use my business school experience to properly manage the restaurant. My goal is to decrease the amount of time a customer waits and to increase the profitability of the restaurant and minimize cost. The following paper is an outline of the decisions I made to maximize profits by decreasing the amount of time a customer waits in Mario’s pizzeria.

Apply the Learning Curve Theory

My first task is to decide if the current table set up is adequate for the environment. During week three through four, I decided to use ten tables of four at a cost of $20.00 a day. Tables of four are being utilized at a percent rate of 95.71. I used eight tables for tables of two that are being used at 87.27 percent, this cost is 16 dollar per day. My waiter staff of four is being used at 86.94 percent, the mean is 8.00, standard deviation is 2.12 and the cost per day is $200.00 a day. My Kitchen staff of two is being utilized at 65.14 and the mean is 3.00, standard deviation 1.00 and the cost per day is 160.00. I decided to not change the numbers of waiters and kitchen staff because I did not see a change in profits when I increased the staff members.

My second task is to determine if I should repair two broken manual ovens or purchase a new manual oven or a conveyor oven. The price of a conveyor oven is $4,500 at an operating cost of...

Apply the Learning Curve Theory

University of Phoenix

Operations Management

OPS571

Apply the Learning Curve Theory

Introduction

This paper is based on a simulation about a pizza parlor, named Mario’s Pizzeria in Palm Springs, California. Mario’s pizzeria is known for its original taste and fresh ingredients. In an effort to test his grandchild’s management skills, Mario temporarily gives the responsibility of operating the restaurant for two weeks to his grandchild. If his grandchild is successful, the restaurant will be handed over to his grandchild. In this simulation, I will need to use my business school experience to properly manage the restaurant. My goal is to decrease the amount of time a customer waits and to increase the profitability of the restaurant and minimize cost. The following paper is an outline of the decisions I made to maximize profits by decreasing the amount of time a customer waits in Mario’s pizzeria.

Apply the Learning Curve Theory

My first task is to decide if the current table set up is adequate for the environment. During week three through four, I decided to use ten tables of four at a cost of $20.00 a day. Tables of four are being utilized at a percent rate of 95.71. I used eight tables for tables of two that are being used at 87.27 percent, this cost is 16 dollar per day. My waiter staff of four is being used at 86.94 percent, the mean is 8.00, standard deviation is 2.12 and the cost per day is $200.00 a day. My Kitchen staff of two is being utilized at 65.14 and the mean is 3.00, standard deviation 1.00 and the cost per day is 160.00. I decided to not change the numbers of waiters and kitchen staff because I did not see a change in profits when I increased the staff members.

My second task is to determine if I should repair two broken manual ovens or purchase a new manual oven or a conveyor oven. The price of a conveyor oven is $4,500 at an operating cost of...