Operations Management
17th Edition
ISBN: 9781259142208
Author: CACHON, Gérard, Terwiesch, Christian
Publisher: Mcgraw-hill Education,
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Chapter 17, Problem 4CQ
Summary Introduction
To determine: Relationship between implied utilization and utilization in best described in which of the following?
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A small town with one hospital has 4 ambulances to supply ambulance service. Requests for ambulances during nonholiday weekends average 0.70 per hour and tend to be Poisson-distributed. Travel and assistance time averages 2.50 hours per call and follows an exponential distribution Use Table 1. a. Find system utilization. (Round your answer to the nearest whole percent. Omit the "%" sign in your response.) System utilization % b. Find the average number of customers waiting. (Round your answer to 3 decimal places.) Average number of customers c. Find the average time customers wait for an ambulance. (Round your answer to 3 decimal places.) Average time hour d. Find the probability that all ambulances will be busy when a call comes in. (Round intermediate calculations to 3 decimal places and final answer to 2 decimal places.) Probability
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If the arrival rate doubles and the number of servers doubles, what is the changein the system’s utilization, assuming there are no other changes (e.g., the processing timeand the coefficients of variation remain the same)?A. Utilization increases.B. Utilization remains the same.C. Utilization decreases.D. It is not possible to determine how those changes will influence utilization.
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- (Requires the use of a spreadsheet or LINGO) USAirlines receives an average of 500 calls per hour fromcustomers who want to make a reservation (time betweencalls follows an exponential distribution). It takes an averageof 3 minutes to handle each call. Each customer who buys a ticket contributes $100 to US Airlines profit. It costs $15per hour to staff a telephone line. Any customer who receivesa busy signal will purchase a ticket on another airline. Howmany telephone lines should US Airlines have?arrow_forwardIn a job shop, effective capacity is only 79 percent of design capacity, and actual output is 53 percent of effective output. What design capacity would be needed to achieve an actual output of 11 jobs per week? What is its effective capacity? a. The Design Capacity needed to achieve the required actual job outputs Blank 1 (round to whole number) b. The Effective Capacity needed to achieve the required actual job outputs = Blank 2 (round to whole number) Blank 1 Add your answerarrow_forwardA 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.arrow_forward
- 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. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus equipment) as the measure.arrow_forwardA 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.arrow_forwardWhich is correct regarding Hubbert Model? O a. Can be represented by a bell-shaped graph O b. A mathematical model that deals with resource utilization O c. Can be used to predict future resource utilization O d. All of thesearrow_forward
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- Which of the following statements about scenario analysis is NOT correct? Scenario analysis can help managers make insightful decision. Scenario analysis can be used to analyze the value of a utilization program. Scenario analysis can be used to find minimum PMPM rate for breakeven. By using scenario analysis, we can definitely accept a lower PMPM rate than the rate at breakeven since scenario analysis is a tool for control cost.arrow_forwardA server operates with 70% utilization. The coefficient of variation for the service process is 0.6 and the coefficient of variation of the arrival process is 1. The average processing time is 3 minutes. What is the average time a customer spends in the system according to the single-server queue model? A. 9 minutes B. 6 minutes C. 3 minutes D. 7.5 minutes Consider an Erlang loss system. The average processing time is 6 minutes. The average interarrival time is 3 minutes. The number of servers is 9. What is the capacity of the system? A. 0.8 customers per minute B. 1.5 customers per minute C. 1.1 customers per minute D. 2.4 customers per minutearrow_forwardGive the definition, purpose, and characteristics of the following: 1. Customer Care Call 2. Collection Call 3. Telemarketing Call 4. Inbound Call 5. Outbound Callarrow_forward
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