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business
service management operations strategy

Questions and Answers of Service Management Operations Strategy

b. Simulate 10 trips and calculate the expected trip time.
from node 1 to node 7.
a. Develop a Monte Carlo simulation model to determine the expected trip time
b. Simulate 5 project completion experiences using random numbers from Appendix B. What is the expected project duration time?16.16. Consider the travel network shown in Figure 16.12 in which the
a. Develop a Monte Carlo simulation model that can be used to generate a distribution of project completion times (longest path from node 1 to 8).
16.15. The project network for building a garage is shown in Figure 16.11 and includes data on activity times and their deviations.
c. Can you think of other bulb replacement policies to test?
Discuss some questions of experimental design that this problem poses.
b. Simulate five years of activity using random numbers from Appendix B.
a. Develop a Monte Carlo simulation model that will help the Coast Guard to decide between the following replacement policies: (1) Replace only the bulb that burns out or (2) replace both bulbs when
The estimated cost of dispatching a motor launch with a crew to the buoy to remove and replace the weatherproof cover over the bulbs is $50, and the bulbs cost $10 each. The time involved in
The clinic is considering adopting a queue priority system that is determined by the time of entry into the system at the receptionist. How might patients waiting for the doctor react to this policy?
What would be the impact on the above calculations of adding a second doctor to the clinic and sharing the doctor queue between them on a “first MD available” basis?
What are the key assumptions involved in your analysis above? Discuss the appropriateness of each in this situation.
Average idle time in minutes per hour of work for the receptionist, the nurse clinician, and the doctor.
Overall average time in the system (i.e., expected time for an arriving patient).
Average time in the entire system for each of the three patient paths.
Average waiting time in each of the queues (i.e., receptionist, nurse clinician, and physician).
Assume the waiting line at the receptionist, the nurse clinician, and the doctor are managed independently with an FCFS priority. Using queuing formulas and the assumption that patients exiting from
If FreeEx must pay $200 per flight to charter a bus to transport its passengers from Dulles to Reagan National, should it exercise the option of permitting its aircraft to land at Dulles during bad
During bad weather, FreeEx has the option of instructing the Washington air controller to place its planes in a holding pattern from which planes are directed to land either at Reagan• National or
how many reserve gallons (i.e., gallons over and above expected usage) should be provided for clear-weather flights? For bad-weather flights?
Given FreeEx’s policy of ensuring that its planes do not run out of fuel more than 1 in 20 times while waiting to land,
how many additional gallons of fuel on average should FreeEx expect its planes to consume because of airport congestion?
During periods of bad weather, as compared with periods of clear weather,
d. It is reasonable to assume that the time to service a customer will decrease as the fill-up criterion increases. Under “normal” conditions, it takes, on average, 2 minutes to pump the gasoline
vc. Making the same assumption as in partb, compare the results obtained if the fill-up criterion is one-half full. Do we have the makings of a behaviorally induced gasoline panic?
b. Suppose that customers perceive a gas shortage (when there is none) and respond by changing the fill-up criterion to more than one-eighth full on average.Assuming that changes in are inversely
a. Determine the expected length of the queue and the expected time in the system.
16.10. Consider a one-pump gas station that satisfies the assumptions for the M / M /1 model. It is estimated that, on average, customers arrive to buy gas when their tanks are one-eighth full. The
c. What hourly savings are achieved by pooling the tellers?
b. If, instead, both tellers work all the stations and the customer waiting the longest is served by the next available teller, what is the average number of customers in the system?
a. Assume that each teller is assigned two stations exclusively, that demand is divided equally among the stations, and that no customer jockeying is permitted.What is the average number of customers
16.9. Community Bank is planning to expand its drive-in facility. Observations of the existing single-teller window reveal that customers arrive at an average rate of 10 per hour, with a Poisson
c. Assume that the cost of keeping an airplane in the air is approximately $70 per hour. If the cost of the proposed radar system were $100 per hour, would you recommend its adoption?
b. A new ground-approach radar system approved by the Federal Aviation Administration is being considered as a means of reducing congestion. Under 430 Part Four Quantitative Models for Service
a. What is the expected number of airplanes circling the airport, waiting in queue for clearance to land?
16.8. Green Valley Airport has been in operation for several years and is beginning to experience flight congestion. A study of airport operations revealed that planes arrive at an average rate of 12
d. Last National is considering adding tellers at the current drive-in facility. It has decided on $5 per hour as the imputed cost of customer waiting time in the system. The hourly cost of a teller
c. There is space in the drive for 3 cars (including the one being served). What is the probability of traffic on the street being blocked by cars waiting to turn into the bank driveway?
b. If Last National were using an automated teller machine with a constant service time of 2 minutes, what would be the expected number of drive-in customers in the system?
a. What is the expected number of customers waiting in queue?
a negative exponential distribution.
16.7. Last National Bank is concerned about the level of service at its single drive-in window. A study of customer arrivals during the window’s busy period revealed that, on average, 20 customers
b. Sea Dock can increase its unloading capacity to a rate of 4 ships per day through additional labor at a cost of $480 per day. Considering the $1,000-per-day demurrage fee charged to Sea Dock for
Records show that, on average, 2 tankers arrive per day, with a Poisson distribution.Supertankers are unloaded one at a time on a first-come, first-served (FCFS)basis. Unloading requires
c. Suppose the new copying machine is rented. How many chairs should be provided for those waiting in line if we are satisfied when there will be enough chairs at least 90 percent of the time?1•
Chapter 16 Capacity Planning and Queuing Models 429 to identify properly the number of customers who might be present for this situation to arise.)
b. For the old copying machine, what is the probability when a person arrives that he or she will encounter people already waiting in line for service? (Be careful
a. If the new machine can be rented for $10 per hour more than the old machine, should the company rent the new machine? Consider lost productive time of employees as time spent waiting in queue only
16.5. A company has a central document-copying service. Arrivals are assumed to follow the Poisson probability distribution, with a mean rate of 15 per hour. Service times are assumed to follow the
Under this criterion, by how much must the arrival rate per hour increase to justify a second booth?
b. Suppose the criterion for justifying a second booth is changed to the following:install a second booth when the probability of having to wait at all exceeds 0.6.
a. By how much must the arrival rate per hour increase to justify a second telephone booth?
16.4. On average, 4 customers per hour use the public telephone in the sheriff’s detention area, and this use has a Poisson distribution. The length of a phone call varies according to a negative
b. If there were room to park only 2 boats at the top of the ramp in preparation for launching, how often would an arrival find insufficient parking space?
a. The LCRA plans to add another ramp when the average turnaround time (i.e., time in the system) exceeds 90 minutes. At what average arrival rate per hour should the LCRA begin to consider adding
boat is 10 minutes, with negative exponential distribution. Assume that only one boat can be launched or retrieved at a time.
16.3. The Lower Colorado River Authority (LCRA) has been studying congestion at the boat-launching ramp near Mansfield Dam. On weekends, the arrival rate averages 5 boaters per hour, Poisson
committee has been instructed to consider only machines that will yield an average turnaround time (i.e., expected time in the system) of 5 minutes or less. What is the smallest processing rate per
Past records show that the average student arrival rate is 24 per hour, Poisson distributed, and that the service times are distributed exponentially. The selection
16.2. A business school is considering replacing its copy machine with a faster model.
b. The management is interested in adding another mechanic when the customer’s average time in the system exceeds 90 minutes. If business continues to increase, at what arrival rate per hour will
a. On arrival at the garage, how many customers should one expect to find in the system?
16.1. A general-purpose auto-repair garage has one mechanic who specializes in muffler installations. Customers seeking service arrive at an average rate of 2 per hour, with a Poisson distribution.
5. Discuss how the M / G / model could be used to determine the number of emergency medical vehicles required to serve a community.
4. What are some disadvantages associated with the concept of pooling service resources?
3. For a queuing system with a finite queue, the arrival rate can exceed the capacity to serve. Use an example to explain how this is possible.
Facility and Process Flows,” and suggest other reservations about this planning exercise.
2. Example 16.1 presented a naive capacity planning exercise and was criticized for using averages. Recall the concept of a “bottleneck” from Chapter 7, “The Supporting
Under the pressure of long waiting lines, servers may speed up, spending less time with each customer, and, thus, increase service capacity. A gracious and leisurely manner,
Excessive waiting, if known or observed by potential customers, will cause them to reconsider their need for service and, thus, will reduce demand.
Queue discipline. First-come, first-served (FCFS
Queue configuration. Single waiting line with no restrictions on length and no balking or reneging.
Calling population. An infinite or very large population of callers arriving. The callers are independent of each other and not influenced by the queuing system (e.g., an appointment is not
Consequently, Xerox performed a queuing analysis to determine the best way to resolve its dilemma. Initial constraints, primarily involving human factors such as some loss of
Compromising the level of service meant that customers would have to wait, which would translate in this case into lost revenue for the customer (and, indirectly, for Xerox).
Xerox Corporation faced precisely this dilemma when it introduced the Model 9200 Duplicating System. 1 Its existing service and maintenance operation, which consisted of individual technical
The capacity planning decision involves a trade-off between the cost of providing a service and the cost or inconvenience of customer waiting. The cost of service capacity is determined by the number
Use queuing models and various decision criteria for capacity planning.
Describe the relationships between queuing system characteristics.
Use queuing models to calculate system performance measures.
Describe a queuing model using the A / B / C notation.
Discuss the strategic role of capacity planning.
Briefly assess the potential problems you see in applying critical path analysis to the sketch plan for moving Whittier County Hospital
1.The board of directors has said that it would like to try to move on a Sunday to minimize interference with weekday traffic. If there are Sundays that fall 46, 53, 60, 67, and 74 days from now,
Assume that you are part of the management staff whose task is to develop this sketch plan. Using Microsoft Project, develop the PERT network as outlined above, identify the critical path, and
under way at the new location once the first six activities are complete, and this is the critical goal established by the hospital’s board of directors. The new location, of course, will not be
Once the construction and equipment checkout is completed, the new facility must be cleaned thoroughly by hospital staff before the actual move so that it will conform to the required levels for such
Coordinate the admissions and exchange procedures during the transition period with other hospitals in the surrounding area; this is estimated to take at least 2, probably 3, and at most, 5 days.
Coordinate the procedures with, and determine the responsibilities of, the local police and fire departments; this is estimated to take at least 3, probably 5, and at most, 10 days.
Negotiate with professional moving companies for transferring equipment, records, and supplies; this is estimated to take at least 4, probably 5, and at most, 8 days.
Negotiate with local EMS and private ambulance services for transferring the patients; this is estimated to take at least 10, probably 14, and at most, 20 days.
Develop information and generate media coverage for the upcoming events; this is estimated to take at least (and probably) 2 days, and 3 days at most.
Develop and distribute an information newsletter to all hospital employees outlining the general procedures, with specific procedures attached for each department; it is estimated that this will take
Using the original network and critical path, what strategies could management consider to complete the pro
if delivery of the hardware were delayed by 30 days? Would the critical path change?
The elapsed time for delivery of the hardware is estimated at 90 days. Would the project completion time be affected 1.2.
Using Microsoft Project, prepare a network and identify the critical path activities, the expected project duration, and scheduling times for all activities.
16.18. Leapyear Tire is interested in carrying insufficient numbers of budget tires de- liberately. If a customer finds a budget tire is not available, a salesperson will try to sell a more expensive

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