Table 2.

3
Patient Number
1
2
3
4
5
6
7
8
9
10
11

Arrival Time
7:35
7:45
8:10
9:30
10:15
10:30
11:05
12:35
14:30
14:35
14:40

Table 2.4

Page 2-10
Page 2-13

0.933333333
15

Departure Time Flow Time

8:50
1:15
10:05
2:20
10:10
2:00
11:15
1:45
10:30
0:15
13:35
3:05
13:15
2:10
15:05
2:30
18:10
3:40
15:45
1:10
17:20
2:40
Average 2:04:33
56

Kmart Corp.
Inventory
Income
Total operating revenue
Cost of goods sold
Net income
Wal-Mart Stores Inc.
Inventory
Income
Net sales
Total operating revenue
Cost of goods sold
Net income
Kmart 2002 Flow Rate
Kmart 1998 Flow Rate
Wal-Mart 2002 Flow Rate

1/28/1998 1/27/1999 1/26/2000 1/31/2001 1/29/2002

6367

6536

6350

5796

4825

33674
26319
518

35925
28161
364

37028
29732
-268

36151
29853
-2446

30762
26258
-3219

16497

17076

19793

21644

22749

117958
119299
93438
3526

137634
139208
108725
4430

165013
166809
129664
5377

191329
193295
150255
6295

217799
219812
171562
6671

0.1837535 67.070036 5.4420725 3.6750705

0.2419165 88.299517
0.1325993 48.398742 7.5415183

Inventory
Cost of Goods Sold
Flow Time (in years)
Inventory Turnover
Per-Unit Inventory Cost Percentage

400
26442
0.015127
66.105
0.605098

Throughput (in passengers per hour)

Inventory
Flow Time (in hours)
Flow Time (in minutes)

255
35
0.137255
8.235294

Sales
Inventory

60000000
20000000

Part A
Selling Price
COGS per Unit
Units Sold
Total COGS
Flow Time (in years)
Inventory Turns

2000
1000
30000
30000000
0.666667
1.5

Part B
Per-Unit Inventory Cost Percentage
Per-Unit Inventory Cost (in $)

16.66667
166.6667

Revenue
Inventory
COGS

100000000
5000000
50000000

Part A
Flow Time (in years)
Inventory Turnover

0.1
10

Part B
Per-Unit Inventory Cost Percentage
Per-Unit Inventory Cost (in $)

4
1.2

Inventory
Flow Time (in days)
Part A
Throughput (in skiers per day)

1200
10

120

Part B
New Throughput
240
On an average day, there are 1200 skiers, and 240 of those are spending their first night in the hotel.
In 2002/03 there were still an average of 1200 skiers each day, but only 120 of those were spending their first night in the ho
Average Daily Revenue (2002/03)
38400
Average Daily Revenue (2003/04)
40800
Percentage Change from 2002/03 to 2003/04

5.88%

ng their first night in the hotel.

Speed (in MPH)

Inventory
Flow time for 1/4-mile stretch of highway (in hrs)
Throughput (in cars per hour on highway)
Throughput (in cars per minute on highway)

60
24
0.004167
5760
96

Flow Time (in minutes)

Flow Time (in hours)
Throughput (in units per hour)

12
0.2
4000

Required Inventory (oven size)

800

Associates
Managers
Partners

200
60
20

Associate flow time (in years)

Manager flow time (in years)
Partner flow time (in years)

4
10
20

Part A
Associate throughput

50

Part B
Probability that new associate will become partner
Odds that new associate will become partner

0.1
10 to 1

Inventories ($MM)
Sales (net $MM)
COGS ($MM)

Costco
Wal-Mart
3643
29447
48106
286103
41651
215493

Part A
Flow Time (in days)

31.92468 49.87705

Part B
Per-Unit Inventory Cost Percentage
Per-Unit Inventory Cost (in $)

2.623947 4.099484
0.131197 0.204974

Difference between inventory cost for $5 COGS item for the two companies:

0.073777

Inventory
Revenue
Cost of Goods Sold
Gross Profit

McDonald's Wendy's
129.4
54.4
17140.5
3148.9
11943.7
1634.6
5196.8
1514.4

Part A
Flow Time (in years)
Inventory Turnover

0.01083416 0.03328
92.3006182 30.04779

Part B
Per-Unit Inventory Cost Percentage
Per-Unit Inventory Cost (in $)

0.32502491 0.998409
0.00975075 0.029952

Difference between Wendy's and McDonald's inventory cost per value meal (in $):

0.020202