Enrico Fermi Fermi Questions in Everyday Life

Fermi Questions 1
Fermi Questions
Student’s Name
Professor’s Name
Course Name
Date

FERMI QUESTIONS 2
Introduction
During stringent conditions, when there are no resources or time available in making
traditional business assessments, it is often essential to make quick estimates. For instance, when
a company is avoiding heading off ill-advised expenses, it becomes applicable at the idea or
initial stage of developing a product, especially when the rough estimates are gross maximum or
minimum estimates. The economic, scientific, and engineering community has used Fermi's
question as a starting region of gaining insight into the economies of scale or order of magnitude
estimations (Taggart et al., 2007). As shown in diagram below, there are cases when fermi
question are the best alternatives to uncertain scenarios.
A systemic approach that should be followed when solving Fermi questions is not available as
much as numerous solutions are approachable when estimating with the items. Therefore, some
of the authors engaged in developing the methodology had to find a way of implementing it in
traditional business courses (Aldehayyat & Anchor, 2008). Corporations can use these questions
in their job interviewing processes and estimating the company's gross income as a method of
gauging the applicant's analytical skills and gaining insight into the future company's financial
prospects. Therefore, business students need to consider undertaking the course as it could be of

FERMI QUESTIONS 3
importance in future business processes (Friedl & Biloslavo, 2009). In this assessment, three
tasks require gross estimates of the revenue generated in both of the case studies. It is important
to note that time plays an essential role in making estimates when the initial number of customers
cannot be generated.
Task 1
48-hour Schedule
Hand Washing
Bays
Employees Hand washing
Bays
Hours per
day
Total working
Hours
6 4 7 16
8
Total working Minutes (168*60=10,080 minutes)
Hand washing bay minutes (10,080/20= 504 minutes)
Gross Maximum Revenue in a single shift (504*40=$20,160)
Gross Maximum Revenue in a 48-hour Schedule (48/8= 6*20,160=$120960)
Vacuuming Bays
Employees Vacuuming
bays
Hours per
shift
Total Working
Hours
6 2 7 84
Total working Minutes (84*60=5040 minutes)
Vacuuming Bay Minutes (5040/10=504 minutes)
Gross Maximum Revenue in a single shift (504*10=$5040)

FERMI QUESTIONS 4
Gross Maximum Revenue in a 48-hour Schedule (48/8=6*5040=$30,240)
Gross Maximum Revenue in both washing bays ($30,240 + $120,960=$151,200)
Suppose Employee Breaks are included and 75% of 48-Hour Schedule.
75/100*48=36 hour-schedule
Hand Washing
Bay
Employees Hand washing
Bays
Hours per
day
Total working
Hours
6 4 8 19
2
Total working Minutes (192*60=11,520 minutes)
Hand washing bays minutes (11,520/20= 576minutes)
Gross Maximum Revenue in a single shift (576*40=$23,040)
Gross Maximum Revenue in a 36 hour-Schedule (36/8=4.5*23,040=$103,680)
Vacuuming Bays
Employees Vacuuming
bays
Hours per
shift
Total Working
Hours
6 2 8 96
Total working Minutes (96*60=5760 minutes)
Vacuuming Bay Minutes (5760/10=576 minutes)
Gross Maximum Revenue in a single shift (576*10=$5760)
Gross Maximum Revenue in a 36-hour Schedule (36/8=4.5*5760=$25,920)

FERMI QUESTIONS 5
Gross Maximum Revenue in both washing bays ($103,680+$25,920=$129,600)
The initial Fermi questions require the calculation of maximum gross revenue in a 48-
hour schedule. There are handwashing and vacuuming bays, each with 4 and 2 equipment,
respectively. The hours for working a single day after deducting the hour break is 7 hours.
Calculating the total working hours, we multiply the number of employees, handwashing bay
equipment, and the hours of working, which was found to be 168 total working hours. These
hours could then be converted to minutes, and the handwashing bay minutes could then be
calculated; this was also estimated at 504 minutes. Therefore, the maximum gross revenue in a
single shift was estimated at $20,160. The total maximum revenue of a 48-hour schedule is
calculated by dividing 48 hours by eight and multiplying the value by the maximum gross
income of a single shift, which was estimated as $120,960. Similarly, in the vacuuming bay, the
same process is followed in determining the total maximum revenue, which was estimated at
$30,240. Consequently, the maximum gross income is calculating by summing the maximum
gross revenue generated in both vacuum and handwashing bays, which was estimated at
$151,200.
The second Fermi question requires one to find the maximum gross revenue generated.
Suppose employee break hours are included, and 75% of the 48-hour schedule is redacted. The
only changes that shall be implemented in this second case shall entail the 75% reduction, which
amounts to a 36-hour schedule and 8 hours of handwashing and vacuuming bays. Therefore, the
maximum gross revenue in a 36-hour plan in handwashing bay was estimated at $103,680. On
the other hand, the total maximum revenue in the 36-hour schedule in vacuuming bay was

FERMI QUESTIONS 6
estimated at $25,920. Hence, the final maximum income is calculated by summing $103,680 and
$25,920, which amounts to $129,600.
Task 2
Active
Hours
Days per
Week
Employees
14 7 4
Rotation
Time
Break
8 1
Production Time
5 Minutes
Simultaneous Production
6 Kebabs
Cost of Kebab
$10
Total working hours in a shift (8-1=7)
Rotation Period results in double shifts (14hours/7hours=2 shifts)
Therefore, assuming (2 employees*7=14 hours)
Total working minutes (14*60=840 minutes)
Production Time (840/5=168 minutes)
Simultaneous Production (168*6=1008 kebabs)
Kebab Pricing (1008 kebabs*10=$10080)
Shifts are double, therefore ($10080*2=$20160)
Gross Maximum Revenue in a single shift $20,160
Gross Maximum Revenue in 98-hour period (98/14=7 shifts*$20,160=$141,120)
Suppose employee breaks are included.

FERMI QUESTIONS 7
Active
Hours
Days per
Week
Employees
14 7 4
Rotation
Time
Break
8 0
Total working hours
Shift 1 8
Shift 2 6
Shifts Total Working
minutes
Employee input
Shift 1 8*60 480 480*2=96
0
Shift 2 6*60 360 360*2=72
0
Production time
Shift 1 960/5=132
Shift 2 720/5=144
Simultaneous Production (144+132=276*6=1656 kebabs)
Kebab pricing (1656*$10=$16,560)
Gross Maximum Revenue is $16,560
Gross Maximum Revenue in 98-hour shift (98/14=7 shifts*$16,560=$115,920)
Gross Maximum Revenue in 5% efficiency (75/100*98=73.5/14
hours=5.25*$16560=$86,940)
In the second task, the Fermi question requires the estimates of maximum gross revenue
generated within 98 hours. The total working hours in a shift are estimated to 7 hours after
deducting the one-hour break. The rotation period results in double shifts after dividing the total

FERMI QUESTIONS 8
hours of a shift by the hours of a single shift. The total working minutes are then calculated from
the hours estimated if two employees are working on a single shift, which is estimated at 840
minutes. The production time requires five minutes, which offers an estimation of the number of
minutes that could be taken when producing a single set, which is estimated at 168 minutes. A
simultaneous production could amount to 1008 kebabs after multiplying the number of kebabs
produced simultaneously. The price of a single kebab is $10, and thus the total maximum
revenue generated in a single shift is estimated at $10,080. Since the shifts are double, then
maximum gross revenue generated will be $20,160. Therefore, in a 98-hour schedule, the
approximated gross maximum revenue will be estimated at $141,120. Suppose the employee
breaks are included, then the rotation time will be 8 hours and thus will results in shifts one and
two, each having 8 and 7 working hours, respectively. The production time of both shift one and
shift two is estimated at 132 and 144, respectively.
Furthermore, the simultaneous production offers a rough estimate of 1656 kebabs after
summing the production time in both shifts. The price of kebab is estimated to be $16,560, which
provides the maximum gross revenue of a single working change. Consequently, the maximum
total income in a 98-hour shift amounts to $115,920, and the maximum gross revenue in 75%
efficiency is estimated at $86,940.
Task 3
Seating Capacity
16 people
Customer Serviced

FERMI QUESTIONS 9
Assumingly, (60/100*16=9+16=25 customers
per hour)
Production Cost
0.30 cents
Coffee Charges
$4.50
Employee
s
Working
Hours
Break Total
Working
Hours
Barista 8 1 7
Waiter 8 1 7
Customers Working
hours
Total
Customers
25 7 175
Productio
n Cost
Customer
s
Total
Production
Cost
0.3 175 $52.50
Coffee
Charges
Customer
s
Total Coffee
Charges
$4.50 175 $787.5
0

FERMI QUESTIONS 10
Total Gross Income (787.50-
52.50=$735)
Therefore, Gross Maximum Revenue in a single shift is
$735
Gross Maximum Revenue in a 48-hour schedule
(48/7=6.86*$735=$5042.1
Hence, it is possible to make an offer on purchasing the coffee shop from the gross
calculations during the 48-hour schedule.
In this final task, the customers per hour are estimated to be 25 individuals. Therefore,
when multiplying the working hours and customers, we find the total customers expected within
a single shift to be evaluated at 175 total customers. The total production cost is estimated by
multiplying the number of total customers to the cost of production of a single product
(Holubova, 2017, January), which was estimated at $52.50. The cost of coffee charges is
estimated at $787.5. Thus, the gross income generated is calculated by subtracting the coffee
charges ($787.50) from the value of production ($52.50), which will now be estimated at $735.
The maximum gross revenue in a 48-hour schedule shall thus be calculated by dividing 48 from
7 hours of a single shift, which amounts to 6.86, which is also multiplied by $735, resulting in
$5042.1. Therefore, it was correct to estimate that it was possible to make an offer on purchasing
the coffee shop from the gross calculations.
Conclusion

FERMI QUESTIONS 11
These three tasks have assisted in gaining insight into the maximum gross revenue
generated in both case scenarios. Fermi questions have demonstrated how rough estimates could
be generated and assist one in gauging a company's value (Goos, and Kaya, 2019) In the first
case scenario we have observed the impact of the reduction in the aggregate cost of the
maximum gross revenue generated. Similarly, in the second case scenario, both the calculations
on generating the maximum total revenue generated have been ascertained. Finally, the third task
aimed at finding the profitability of the coffee business, which was obtained after gauging the
number of customers purchasing from the coffee shop. Finally, it was profitable to buy the coffee
shop weighing from the maximum gross revenue generated.

FERMI QUESTIONS 12
References
Aldehayyat, J., & Anchor, J. (2008). Strategic planning tools and techniques in Jordan:
awareness and use. Strategic Change Journal, 17 (7-8), 282–293
Friedl, P., & Biloslavo, R. (2009). Association of Management Tools with the Financial
Performance of Companies: The Example of the Slovenian Construction Sector. Journal
of Managing Global Transition, 7 (4), 383-402
Goos, M., & Kaya, S. (2019). Understanding and promoting students’ mathematical thinking: a
review of research published in ESM. Educational Studies in Mathematics, 1-19.
Holubova, R. (2017, January). STEM education and Fermi problems. In AIP Conference
Proceedings (Vol. 1804, No. 1, p. 030001). AIP Publishing.
Taggart, G. L., Adams, P. E., Eltze, E., Heinrichs, J., Hohman, J., & Hickman, K. (2007). Fermi
Questions. Mathematics Teaching in the Middle School, 13(3), 164-167.