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Created by Rachel Thouless, Theo Lucas, Rafi Ahmed, Jonathon Davis
Conducted an analysis of The Green House of Walled Lake to increase service rate, efficiency, and sales while reducing overhead costs.
Phase 1
Phase 1
Current
6 Cashiers
Service rate 68 customers per hour
Avg time in system 0.88 min
Avg time in queue 0.86 min
Total cost $174.76 per hour
Our Solution
4 Cashiers + 2 Assistants
Service rate increases to 73 per hour
Avg time in system 0.83 min
Avg time in queue 0.81 min
Total cost $170.79 per hour
Current store Layout
Current store Layout
TOTAL STEPS TO FULFILL THE ORDERS IN 12HR (STORE 9AM-9PM) W/ 6 CASHIERS
**Rate 2 steps = 1 sec**
Best case: 29,702 steps = 4.12hrs spent per cashier per day getting items from shelf and back
Worst case: 52,634 = 7.31 hrs spent per day getting items from shelf and back
**Avg hourly rate = $17**
Best Case = 4.12 x 17 = $70.04 per day x 6 cashiers = $420.24
Worst Case = 7.31 x 17 = $124.27 per day x 6 cashiers = $745.62
Current per month cost:
between $12,607.20 to $22,368.60
Proposed Solution
Proposed Solution
TOTAL STEPS TO FULFILL THE ORDERS IN 12HR (STORE 9AM-9PM) W/ 4 CASHIERS
**Rate 2 steps = 1 sec**
Best case: 10,000 steps = 1.39hrs spent per cashier per day getting items from shelf and back
Worst case: 22,568 steps = 3.13hrs spent per cashier per day getting items from shelf and back
**Avg hourly rate = $17**
Best Case = 1.39 x $17 = 23.63 per day per cashier x 4 cashiers = $94.52 per day total
Worst Case = 3.13 x $17 = 53.21 per day per cashier x 4 cashiers = $212.84 per day total
Proposed per month cost:
between $2835.60 to $6385.20
Phase 2
Phase 2
Optimized the facility layout
Current cost to operate Per month: $22,368.60
Proposed cost to operate Per month: $6,385.20
Total savings per month: $15,983.40
Comparing the Phases
Comparing the Phases
Current Issues in Phase 1 & 2:
Excessive Cashiers
No Assistants
Demand Spike Risks
Nonadjacent utilization
Excessive costs
Phase 1 & 2 Solutions provide:
Optimal # of cashiers
Decreased service time
Demand spike mitigation
Adjacent utilization only
Increased service rate
Demand spike mitigation
Covid-19 Recommendation
Covid-19 Recommendation
We recommend using Contactless-Curbside pick-up
New analysis of arrival rate of vehicles, service time for new curbside procedures
Online POS system
Chatbot for customer arrival communication
Sanitization Station at employee exit
Final Recommendation
Final Recommendation
We recommend implementing Phase 1 waiting line analysis, THEN Phase 2 facility layout
Simple implementations
Increase Efficiency
Increase Sales
Reduce overhead costs
Contact us at
Jonathon Davis
Supply Chain Major
Email:
Nether@umich.edu
Rachel Thouless
Supply Chain Major
Email: Rwthoules@umich.edu
Theo Lucas
Supply Chain Major
Email:
Tolucas@umich.edu
Rafi Ahmed
Supply Chain Management
Email:
Rafia@umich.edu
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