4. Comp-Mart, a personal computer retailer, sells and services personal computers. Its main customers are Small and medium sized business. Comp-Mart has 5 retail outlets in the New York metropolitan area, each of which faces roughly equal demand in terms of both the volume and mix of products, and services sold. Each store has one technician, who is responsible for all service required under the service contracts written by the store. Service is performed on-site at the customer's location. The average service time on-site is two hours. In addition, technicians must travel to the customer locations, which takes another 20 minutes on average. Both on-site service times and travel times vary, depending on the complexity of the service problem and the customer's location. Each store receives an average of 1.2 requests per day for service, though the actual number of requests is highly variable. (You can assume all these are the same for each store and that service requests arrive only during the regular 8-hour working day. Service technicians work the same 8-hour day as well. Any requests that have not been serviced by the end of the day are carried over to the next day). Comp-Mart would like to be able to dispatch its. technicians almost immediately to a customer location whenever a service request comes in. Its goal is to dispatch technicians in less than five minutes on average from the time, a service request is received. (n) Is Comp-Mart meeting its service objective? What is its average. dispatch delay? (b) Comp-Mari's chief operating officer, Jane Higgins, is proposing consolidation of the five service technicians into one central location. This change would increase the average travel time to 40 minutes, but it would not affect. the on-site service time of two hours. The CEO, Jim Derk, has expressed concern about Jane's proposal: " Sure Jane, consolidation saves on some overhead. But you know we are having a hell of a time meeting our service commitments... and this new arrangement adds 20 minutes more travel time to each service call! M01w over, you know we cannot afford to hire more technicians; the service contract business is barely turning a profit. To be honest Jane, I think this whole consolidation idea is lousy!" Is Jim right? Specifically, what would be the average dispatch delay under Jane's proposal?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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4. Comp-Mart, a personal computer retailer, sells and services personal computers. Its main customers are Small and medium sized business. Comp-Mart has 5 retail outlets in the New York metropolitan area, each of which faces roughly equal demand in terms of both the volume and mix of products, and services sold. Each store has one technician, who is responsible for all service required under the service contracts written by the store. Service is performed on-site at the customer's location. The average service time on-site is two hours. In addition, technicians must travel to the customer locations, which takes another 20 minutes on average. Both on-site service times and travel times vary, depending on the complexity of the service problem and the customer's location. Each store receives an average of 1.2 requests per day for service, though the actual number of requests is highly variable. (You can assume all these are the same for each store and that service requests arrive only during the regular 8-hour working day. Service technicians work the same 8-hour day as well. Any requests that have not been serviced by the end of the day are carried over to the next day). Comp-Mart would like to be able to dispatch its. technicians almost immediately to a customer location whenever a service request comes in. Its goal is to dispatch technicians in less than five minutes on average from the time, a service request is received. (n) Is Comp-Mart meeting its service objective? What is its average. dispatch delay? (b) Comp-Mari's chief operating officer, Jane Higgins, is proposing consolidation of the five service technicians into one central location. This change would increase the average travel time to 40 minutes, but it would not affect. the on-site service time of two hours. The CEO, Jim Derk, has expressed concern about Jane's proposal: " Sure Jane, consolidation saves on some overhead. But you know we are having a hell of a time meeting our service commitments... and this new arrangement adds 20 minutes more travel time to each service call! M01w over, you know we cannot afford to hire more technicians; the service contract business is barely turning a profit. To be honest Jane, I think this whole consolidation idea is lousy!" Is Jim right? Specifically, what would be the average dispatch delay under Jane's proposal?
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