How much extra profit per pizza would be made


Problem

Bongo's Pizzas cafe has a service guarantee that promises customers not pay for their pizza if it is delivered more than 30 minutes from the time the order is placed. An investigation shows that 15 % of all pizzas are delivered between 15 and 20 minutes from ordering time, 20% between 20 and 25 minutes from ordering time, 50% between 25 and 30 minutes from ordering time, 8% between 30 and 35 minutes from order, and 7 % between 35 and 40 minutes from ordering timeIs the fact that Bongo's does not charge for 10 per cent of its pizzas a significant problem for the business? Explain your answer.

1) If the average profit on each pizza delivered on time is ksh100 and the average cost of each pizza delivered is ksh 500. How much extra profit per pizza would be made if five minutes was cut from all deliveries?

2) You have been offered a job at a restaurant which has been run down for many years. Your task assignment is to revitalize the restaurant. Describe how you would go about the new assignment.

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Operation Management: How much extra profit per pizza would be made
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