Benihana Simulation Essay

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1. Batching With Batching we have an average nightly profit of $121.80 and total revenue of $3155.34. With no batching there is negative nightly profit, overall lower total revenue, more bar revenue, and a constant outflow of customers from 730 to close. They were leaving in droves. Most customers went to the bar from 7:15 to 9:30. During the short time in the bar average drinks per customer was 3+ and dinner orders suffered. Average wait and max wait were both much higher with no batching. There was a steady flow in the dining room but much less customers without the batching. During peak hours batching kept drink orders very similar to dinner orders and they only lost 55 customers. A very steady flow. From 745 to 1030. Also peak bar time was limited to a one hour period 745 to 830. during non peak hours at end of the night there were less drinks than dinners purchased. There was a steady number of customers in the dining room for the entire night. The advantages of batching include higher utilization (57.11% to 49.82%), higher profit and more total revenue. The only disadvantage is to the total bar sales. However, since Benihana is not a bar establishment this is not a true disadvantage. 2. Designing Bar Capacity Having a bar is a good idea because it keeps patrons buffered while waiting for batching. It appears that the more seats in the bar the higher the total profitability. Dinner revenue stayed consistent (with batching) up to 71 seats. Then dinner sales began to drop, but total revenue went up because the bar bills were higher. The maximum seats in the bar (87/10) had highest profit ($214.79) and utilization at 75.60% but again, Benihana is not a bar. People don’t go there primarily to drink so I don’t think having a large bar is a great idea. With 63 bar seats and 13 tables the restaurant only lost 27 customers on average and showed an

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