Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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This effect is concerned with the firm being able to engage with the customer at the right place/time—its ability to do so 24/7 from any location.
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Network effect
Timeliness Effect
Dynamic Effect
Connected Effect
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- Scenario Office Equipment, Inc. (OEI) leases automatic mailing machines to business customers in Fort Wayne, Indiana. The company built its success on a reputation of providing timely maintenance and repair service. Each OEI service contract states that a service technician will arrive at a customer’s business site within an average of 3 hours from the time that the customer notifies OEI of an equipment problem. Currently, OEI has 10 customers with service contracts. One service technician is responsible for handling all service calls. A statistical analysis of historical service records indicates that a customer requests a service call at an average rate of one call per 50 hours of operation. If the service technician is available when a customer calls for service, it takes the technician an average of 1 hour of travel time to reach the customer’s office and an average of 1.5 hours to complete the repair service. However, if the service technician is busy with another customer when a…arrow_forwardThe customer are complaining to the hotel general manager about the service provided from front desk and restaurant how can the general manager reduce variability and increase consistencyarrow_forwardA proposal has been presented to the government of Newfoundland and Labrador that would build a new section of highway which would provide improved access for residents of a remote coastal area near Bonavista. The highway would be 16 kilometres in length. The initial proposal called for 7 toll booths, each staffed by an employee. But a subsequent proposal recommended replacing the employees with machines. Many factors must be considered because the intended employees are unionized. However, one of the government's concerns is the effect that replacing the employees with machines will have on the times the drivers spend in the system. Customers will arrive to any one toll booth at a rate of 9 per minute. In the exact-change lanes with employees, the service time is essentially constant at 5 seconds for each driver. With machines, the average service time would still be 5 seconds, but it would be exponential rather than constant, because it takes time for the coins to rattle around in…arrow_forward
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