A bank is trying to determine which of two machinesshould be rented to process checks. Machine 1 rents for$10,000 per year and processes 1,000 checks per hour.Machine 2 rents for $15,000 per year and processes 1,600checks per hour. Assume that the machines work 8 hours aday, 5 days a week, 50 weeks a year. The bank must processan average of 800 checks per hour, and the average checkprocessed is for $100. Assume an annual interest rate of20%. Then determine the cost to the bank (in lost interest)for each hour that a check spends waiting for and undergoingprocessing. Assuming that interarrival times and servicetimes are exponential, which machine should the bank rent?

A bank is trying to determine which of two machinesshould be rented to process checks. Machine 1 rents for$10,000 per year and processes 1,000 checks per hour.Machine 2 rents for $15,000 per year and processes 1,600checks per hour. Assume that the machines work 8 hours aday, 5 days a week, 50 weeks a year. The bank must processan average of 800 checks per hour, and the average checkprocessed is for $100. Assume an annual interest rate of20%. Then determine the cost to the bank (in lost interest)for each hour that a check spends waiting for and undergoingprocessing. Assuming that interarrival times and servicetimes are exponential, which machine should the bank rent?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter12: Queueing Models

Section12.5: Analytic Steady-state Queueing Models

Problem 30P

See similar textbooks

Similar questions

An injector machine goes down roughly 20% of the time (the injector gums up and needs to be cleaned, a quick process). One operator is assigned to service three identical such machines. Each machine can produce 100 parts/h if running properly (i.e., not down). The operator is paid $10/h and each machine costs $20/h to operate. Consider 8hr/shift a) Please fill in the table below: b) How many parts can you produce per shift? c) What is the unit cost fper part for this operation? d) If you hire another operator at the same rate to assist the first operator, what is the unit cost now? e) Is it worth hiring another operator at the same rate to assist the first operator, in case more than one machine goes down at the same time?
An operation uses 120 Kilos of a certain material each day. Material is transported in containers that hold 20 kilos each. The plant operates on an 8 hours/day. assume that the inefficient factor for 8 this operation is 0.25. If the manager wants to have the number of containers exactly 3 per day, what would be the cycle time for container of this machine operation in hours?
A worker at the State Unemployment Office isresponsible for processing a company’s forms when it opensfor business. The worker can process an average of 4 formsper week. In 2002, an average of 1.8 companies per weeksubmitted forms for processing, and the worker had abacklog of .45 week. In 2003, an average of 3.9 companiesper week submitted forms for processing, and the workerhad a 5-week backlog. The poor worker was fired and suedto get his job back. The court said that since the amount ofwork submitted to the worker had approximately doubled,the worker’s backlog should have also doubled. Since his backlog increased by more than a factor of 10, he must havebeen slacking off, so the state was justified in firing him.Use queuing theory to defend the worker (based on an actualcase!).
create an exercise involving obtaining parts per hour of work. Example: (This is an example, do not answer) A factory that produces computer mice works in a quiet and regular manner since it does not sell its product to large companies, nor is its demand very variable.It produces 280 mice per month, of which 270 are conforming products. In October 2019, 23 days were worked. Its standard operating time is 7 hours a day, with a 30-minute lunch break. In addition, in the mornings the machines must be allowed to warm up for 20 minutes. The machines are operated in this manner from Monday to Friday. When they reach the production of 250 mice, they take a "break" to review the production so far. This waiting time (kanban) takes them 4 hours. Determine the total number of parts produced during the month of October 2019. Now, create another example of parts per hour of work:
A Company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used 7 workers, who produced an average of 87 carts per hour. Workers receive $15 per hour, and machine coast was $43 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $14 per hour while output increased by four carts per hour. a) Compute the multifactor productivity (MFP) (labor plus equipment) under the Prior to buying the new equipment. The MFP (carts/S) = Blank 1 (round to 4 decimal places). b) Compute the productivity changes between the Prior to and after buying the new equipment. The productivity growth = Blank 2% (round to 2 decimal places) Blank 1 Add your answer Blank 2 Add your answer
A Company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used 6 workers, who produced an average of 78 carts per hour. Workers receive $10 per hour, and machine coast was $36 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $13 per hour while output increased by four carts per hour.a) Compute the multifactor productivity (MFP) (labor plus equipment) under the Prior to buying the new equipment. The MFP (carts/$) = (round to 4 decimal places).b) Compute the % growth in productivity between the Prior to and after buying the new equipment. The growth in productivity = % (round to 2 decimal places)
A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used five workers, who produced an average of 80 carts per hour. Workers receive $10 per hour, and machine cost was $40 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $10 per hour, while output increased by four carts per hour.A) Compute labor productivity under each system. Use carts per worker per hour as themeasure of labor productivity.B) Compute the multifactor productivity under each system. Use carts per dollar cost (laborplus equipment) as the measure.C) Comment on the changes in productivity according to the two measures, and on which one you believe is the more pertinent for this situation.
Currently, Commercial Banks have 1 unit of ATM machines to meet customer needs. It is known that there is an average of 12+x customers in the system. Then it is also known that the average time spent by someone in the system is 10 minutes. Assume that the system follows M/M/1. The Commercial Bank operational manager is considering whether it is necessary to add 1 unit of ATM machine. What are your considerations? To strengthen the consideration, compare the queue length, queue length, and utilities before and after adding an ATM machine? Note: x denoted by the last number of my ID Number.Example, if my ID number is 2602296545, then the number used are “5”
A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labour content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used five workers, who produced an average of 100 carts per hour. Workers receive $10 per hour, and machine cost was $40 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $10 per hour while output increased by 20 carts per hour. a. The labor productivity under the old system is Blank 1. Fill in the blank, read surrounding text. and the new system is Blank 2. Fill in the blank, read surrounding text. carts per worker per hour. b. Compute the total factor productivity under each of the systems. Old system Blank 3. Fill in the blank, read surrounding text.
A Printed Circuit Board (PCB) machine installs integrated circuits onto a board. Before starting to produce a board, the PCB machine requires a 16-minute setup. Once in production, the PCB machine requires only 0.19 minute per board. a. Currently, the PCB machine produces 525 boards between setups. Given this operating process, what is the capacity of the PCB machine (in boards per min)? b. Currently, the PCB machine produces 525 boards between setups. Given this operating process, what is the utilization of the PCB machine? c. Say the PCB machine produces 400 boards s between setups and demand is 2 boards per minute. Given the operating process, what is the avergae inventory of boards anf the PCB machine? d. Demand for boards occurs at the rate of 2 boards per minute. What is the smallest batch size such that the PCB machine does not constrain the flow rate through the process?
Analyze the following queueing management sysytem 1- traffic intensity of 0.3 in queueing system 2- The average time spends in the system =0.036 3-The average number of the customer in the system 0.43
Currently, Commercial Banks have 1 unit of ATM machines to meet customer needs. It is known that there is an average of 15 customers in the system. Then it is also known that the average time spent by someone in the system is 10 minutes. Assume that the system follows M/M/1. The Commercial Bank operational manager is considering whether it is necessary to add 1 unit of ATM machine. What are your considerations? To strengthen the consideration, compare the queue length, queue length, and utilities before and after adding an ATM machine?