# Checkout System Assignment | Top Essay Writing

2. Walmart Canada debuted a new checkout system called “fast lane” that lets customers avoid cashiers and registers. Here’s how it works: My Walmart users scan items with their phones as they shop. Once a user is finished shopping, they click “checkout” to receive a barcode. Next, the customer scans the order barcode at one of four scanning stations in the fast lane. This action charges the credit card the My Walmart user has on file.

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Finally, just before exiting the store, customers present their mobile receipts to a worker tending the fast lane. The system has debuted in a newly opened store in Toronto that Walmart says will serve as a prototype for future store renovations. Assume the new fast lane setup will replace 2 old cashier lanes that were staffed by a cashier and bagger on each lane. One worker mans all 4 scanning stations (answering questions, checking for un-scanned items, taking coupons, etc).

Check out on the new lanes takes 2 minutes (customers bag their own orders) while checkout with the old lanes took only 45 seconds. In addition, the electricity costs for both setups are \$0.05 per checkout while bagging (material) costs are \$0.10 per checkout with the old system and \$0.15 for the new system. The new lanes also require \$100/shift in capital costs. Assume that the lanes are always in use for 8 hours per day (1 shift) and that a worker makes \$10/hour.

(a) How many checkouts did the old system provide in a shift?

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(b) How many checkouts does the new system provide?

(c) What is the multifactor productivity for each system? Get Operations Management homework help today

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