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Assignment 1: M/M/1 Performance Evaluation

Example: The arrival rate to a GAP store is 6 customers


per hour and has Poisson distribution. The service time is
5 min per customer and has exponential distribution.
a) On average how many customers are in the waiting line?
b) How long does a customer stay in the line?
c) How long does a customer stay in the processor (with the
server)?
d) On average how many customers are there with the
server?
e) On average how many customers are in the system?
f) On average how long does a customer stay in the system?

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 1


M/M/1 Performance Evaluation

R = 6 customers per hour


Rp =1/5 customer per minute, or 60(1/5) = 12/hour
U= R/Rp = 6/12 = 0.5
a) On average how many customers are there in the
waiting line?

U 2( c 1) Ca C p
2 2

Ii
1U 2
2 (11)
1 1 2 2 0.52
Ii
0.5
Ii 0.5
1 0.5 2 0.5
Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 2
GAP Example

b) How long does a customer stays in the line?

RTi I i 6Ti 0.5 Ti 0.5 / 6 hour


Ti 60(0.5 / 6) 5 minutes

c) How long does a customer stay in the processor (with the


server)?

Tp 5 minutes

d) On average how many customers are there with the


server?
I p ? Ip TpR (5)(1 / 10) 0.5 Alternativ ely, I p cU 1(0.5) 0.5

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 3


M/M/1 Performance Evaluation
e) On average how many customers are in the system?

I ? I I i I p 0.5 0.5 1
f) On average how long does a customer stay in the
system?
T Ti Tp 5 5 10 min

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 4


Assignment 2: M/M/1 Performance Evaluation

What if the arrival rate is 11 per hour? Processing rate is


still Rp=12
R 11
U
Rp 12 2
11

U2
10.08
12
Ii
1 U 1 11
12
RTi I i 11Ti 10.08
Ti 10.08 / 11 0.91667 hours or 55 min

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 5


M/M/1 Performance Evaluation

As the utilization rate increases to 1 (100%) the


number of customers in line (system) and the waiting
time in line (in system) is increasing exponentially.
c R Rp U Ii Ti (min) Tp T Ip I
1 6 12 0.50 0.50 5 5 10 0.50 1
1 7 12 0.58 0.82 7 5 12 0.58 1.4
1 8 12 0.67 1.33 10 5 15 0.67 2
1 9 12 0.75 2.25 15 5 20 0.75 3
1 10 12 0.83 4.17 25 5 30 0.83 5
1 11 12 0.92 10.08 55 5 60 0.92 11
1 11.1 12 0.93 11.41 61.7 5 66.7 0.93 12.33
1 11.2 12 0.93 13.07 70 5 75 0.93 14
1 11.3 12 0.94 15.20 80.7 5 85.7 0.94 16.14
1 11.4 12 0.95 18.05 95 5 100 0.95 19
1 11.5 12 0.96 22.04 115 5 120 0.96 23
1 11.6 12 0.97 28.03 145 5 150 0.97 29
1 11.7 12 0.98 38.03 195 5 200 0.98 39
1 11.9 12 0.99 118.01 595 5 600 0.99 119

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 6


Assignment 3: M/G/c

A local GAP store on average has 10 customers per hour for the
checkout line. The inter-arrival time follows the exponential
distribution. The store has two cashiers. The service time for
checkout follows a normal distribution with mean equal to 5
minutes and a standard deviation of 1 minute.
a) On average how many customers are in the waiting line?
b) How long does a customer stay in the line?
c) How long does a customer stay in the processors (with the
servers)?
d) On average how many customers are there with the servers?
e) On average how many customers are in the system ?
f) On average how long does a customer stay in the system ?

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 7


Key Information
Arrival rate: R = 10 per hour
Average inter-arrival time: Ta = 1/R = 1/10 hr = 6 min
Standard deviation of inter-arrival time: Sa
Service rate per server: 12 per hour
Average service time: Tp = 1/12 hours = 5 min
Standard deviation of service time: Sp = 1 min
Coefficient of variation for inter-arrival time: Ca= Sa /Ta = 1
since inter-arrival time is exponential.
Coefficient of variation for service time: Cp = Sp /Tp = 1/5
=0.2
Number of servers: c =2
Rp = c/Tp = 2/(1/12) = 24 per hour
U= R/Rp = 10/24 = 0.42
Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 8
M/G/2 Example

a) On average how many customers are there in the


waiting line?
U 2 ( c 1)
Ca2 C p2 0.42 2( 21) 12 0.22
Ii 0.107
1U 2 1 0.42 2
b) How long does a customer stay in the line?
RTi I i 10Ti 0.107
Ti 0.0107 hour 0.6 minutes
c) How long does a customer stay in the processors
(with the servers)?
Average service time: Tp = 1/12 hours = 5 min
Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 9
M/G/2 Example

d) On average how many customers are there with the


servers?
I p ? Ip TpR (1 / 12)(10) 0.84

Alternativ ely, I p cU 2(0.42) 0.84

e) On average how many customers are there in the


system?
I ? I I i I p 0.107 0.84 0.95

f) On average how long does a customer stay in the


system?
T ? T 0.6 5 5.6 min
Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 10
Comment on General Formula

Approximation formula gives exact answers for M/M/1


system.

Approximation formula provide good approximations


for M/M/2 system.

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 11


Assignment 4: M/M/c Example

A call center has 11 operators. The arrival rate of calls is


200 calls per hour. Each of the operators can serve 20
customers per hour. Assume inter-arrival time and
processing time follow Poisson and Exponential,
respectively. What is the average waiting time (time
before a customers call is answered)?

U
200
0.91 Ca 1 Cp 1
220

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 12


M/M/c Example

U C C
2 ( c 1) 2 2
0.91 11
2 (12)
Ii
a p
Ii 6.89
1U 2 1 0.91 2

I i RTi 6.89 200Ti

Ti 0.0345 hour or 2.1 min

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 13


Assignment 5: M/D/c Example

Suppose the service time is a constant


What is the answer to the previous question?
In this case C p 0

2 (111)
C C
2 ( c 1) 2 2 0.91 1 0
Ii
U

a p Ii 3.45
1U 2 1 0.91 2

I i RTi 3.45 200Ti

Ti 0.017 hour or 1.03 min

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 14


Additional Problems

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 15


Problem 6
Students arrive at the Administrative Services Office on
the average of one every 15 minutes, and their request
take on average 10 minutes to be processed. The service
counter clerk works 8 hours per day and is staffed by
only 1 clerk, Judy Gumshoe. Assume Poisson arrivals and
exponential service times.
M/M/1 Queuing System
R = 4 customers/hour, Poisson (Ca =1)
Rp = 6 customers/hour, Exponential (Cp =1)

a) What percentage of time is Judy idle?


b) How much time, on average, does a student spend
waiting in line?
Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 16
Problem 6; M/M/1

a) What percentage of time is Judy idle?


U = R/Rp = 4/6 = 66.67% of time she is busy
1- U = 33.33% of time idle

b) How much time, on average, does a student


spend waiting in line?

C C
2 ( c 1) 2 2 2 (11)
12 12
I i 1.33
0.67
U Ii
Ii
a p
1 0.67 2
1U 2
Ti R = Ii Ti = Ii/R 1.33/4 = 0.33 hours
= 0.33 hours or 20 minutes
Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 17
Problem 7
You are working at a bank and doing resource
requirements planning. You think that there should be six
tellers working in the bank. Tellers take fifteen minutes
per customer with a standard deviation of five minutes.
On average one customer arrives in every three minutes
according to an exponential distribution.
a) On average how many customers would be waiting in
line?
b) On average how long would a customer spend in the
bank?

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 18


Problem 7; M/G/c

c = 6, R = 20, Rp = c/Tp = 6/15 /min, 60(6/15) = 24 /hr


U = R/Rp = 20/24 = 0.83
Ca = 1, Cp = 5/15 = 0.33
a) On average how many customers are in line?

Ca2 C p2 0.83 2(61) 1 0.33


2 ( c 1) 2 2

Ii
U
Ii I i 1.62
1U 2 1 0.83 2
b) On average how long would a customer spend in the
bank?
Ti = Ii/R 1.62/20 = 0.081 hours, or 4.86 minutes
Tp = 15 minutes
T = Ti+Tp = 4.86+15 = 19.86 minutes
Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 19
Problem 8
Consider a call center with 8 agents. Past data has shown that
the mean time between customer arrivals is 1 minute, and has
a standard deviation of 1/2 minute. The amount of time in
minutes the past 10 callers have spent talking to an agent is as
follows: 4.1, 6.2, 5.5, 3.5, 3.2, 7.3, 8.4, 6.3, 2.6, 4.9.
a) What is the coefficient of variation for the inter-arrival
times?
b) What is the mean time a caller spends talking to an agent?
c) What is the standard deviation of the time a caller spends
talking to an agent?
d) What is the coefficient of variation for the times a caller
spends talking to an agent?
e) What is the expected number of callers on hold, waiting to
talk to an agent?
Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 20
Problem 8; G/G/1

a) What is the coefficient of variation for the inter-


arrival times?
Ca = Sa/Ta = 0.5/1 = 0.5

b) What is the mean time a caller spends talking to an


agent?
= average (4.1, 6.2, 5.5, 3.5, 3.2, 7.3, 8.4, 6.3, 2.6,
4.9) = 5.2 minutes.
c) What is the standard deviation of the time a caller
spends talking to an agent?
= stdev(4.1, 6.2, 5.5, 3.5, 3.2, 7.3, 8.4, 6.3, 2.6,
4.9) =1.88 minutes

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 21


Problem 8

d) What is the coefficient of variation for the times a


caller spends talking to an agent?
(standard deviation)/mean = 1.88/5.2 = 0.36

e) What is the expected number of callers on hold,


waiting to talk to an agent?
R= 1 per minute, c = 8, processing rate for one agent is
= 1/5.2. For c=8 agents, Rp = 8/5.2 = 1.54 /min
U = R/Rp= 1/(1.54) = 0.65

U C C
2 ( c 1)
0.65 2(81) 0.52 0.362
2 2

Ii Ii a p
I i 0.09
1U 2 1 0.65 2
Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 22
Problem 8

f) What is the expected number of callers either on hold


or talking to an agent?
I = Ii + Ip= 0.09 + 0.65(8) =5.29
g) What is the expected amount of time a caller must
wait to talk to an agent?
RTi = Ii Ti = 0.09/1 = 0.09 minutes
h) What is the expected amount of time between when
a caller first arrives to the system, and when that
caller finishes talking to an agent?
T = I/R = 5.29/1 = 5.29 minutes
Alternatively; T= Ti+Tp = 0.09+5.2 = 5.29

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 23


Problem 9
Wells Fargo operates one ATM machine in a certain
Trader Joes. There is on average 8 customers that use
the ATM every hour, and each customer spends on
average 6 minutes at the ATM. Assume customer
arrivals follow a Poisson process, and the amount of
time each customer spends at the ATM follows an
exponential distribution.

a) What is the percentage of time the ATM is in use?


R = 8 per hour, Rp = 10 per hour
U = 8/10 = 0.8 =80%

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 24


Problem 9; M/M/1

b) On average, how many customers are there in line


waiting to use the ATM?
U 2( c 1) Ca C p 0.8 2(11) 1 1
2 2 2 2

Ii Ii I i 3.2
1U 2 1 0.8 2

c) Suppose that the number of customers in line waiting


to use the ATM is 3. (This may or may not be the
answer you found in part b). All information remains
as originally stated. What is the average time a
customer must wait to use the ATM? State your
answer in minutes.

TiR = Ii Ti = 3/8 hr Ti = 3/8 (60) = 22.5 minutes


Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 25
Problem 10

The Matador housing office has one customer


representative for walk-in students. The arrival rate is 10
customers per hour and the average service time is 5
minutes. Both inter-arrival time and service time follow
exponential distributions.
a) What is the average waiting time in line?
R = 10 /hr, Rp = 12 /hr, U = 10/12= 0.83
.
U 2 ( c 1)
Ca2 C p2 0.83 1 1
2 (11) 2 2
Ii Ii I i 4.17
1U 2 1 0.83 2
Ti = Ii/R = 4.17/10 = 0.42 hr
Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 26
Problem 11
The Monterey post station has 7 tellers from Monday to
Saturday. Customers arrive to the station following a
Poisson process with a rate of 36 customers per hour.
The service time is exponentially distributed with mean
10 minutes.
a) What is the utilization rate of the tellers?
R = 36, Rp = 7/10=0.7 /min or 42 /hr
U = R/Rp= 36/42 = 6/7 = 85.7%
b) What is the average number of customers waiting in
line?
U C C
2 ( c 1) 2 2
0.857 1 1
2 ( 7 1) 2 2

Ii
a p
Ii I i 3.77
1U 2 1 0.857 2
Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 27
Problem 11
On Sunday, instead of tellers, the post station only
opens 3 auto-mail machines to provide automatic
service. Each machine can weight the different size of
packages, print self-adhesive labels and accept
payments. Arrival is Poisson with rate 20 customers per
hour. The service time is 4 minutes with probability
0.75 and 16 minutes with probability 0.25.
c) What is the mean service time?
Tp = 0.75(4) + 0.25(16) = 7 min
d) What is the coefficient of variation of service time?
Sp = sqrt[0.75(4-7)2+0.25(16-7)2] =
sqrt[0.75(3)2+0.25(9)2] =5.2
Cp = 5.2 / 7 = 0.74
Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 28
Problem 11

e) What is the utilization rate?


R = 20 customers/hr, Rp = 0.429 /min or 25.71
U =R/Rp= 20/(25.71) = 77.7%

f) What is the average number of customers waiting in


line?

U 2 ( C 1)
Ca2 C p2
Ii
1U 2

0.777 2 ( 31)
12 0.742
Ii 2.2 0.77 1.7
1 0.777 2
Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 29
Problem 12
Bank of San Pedro has only 1 teller. On average, 1 customer
comes every 6 minutes, and it takes the teller an average of 3
minutes to serve a customer. To improve customer
satisfaction, the bank is going to implement a unique policy
called, We Pay While You Wait. Once implemented, the bank
will pay each customer $3 per minute while a customer waits
in line. (So the clock starts when a customer joins the line,
and stops when the customer begins to talk to the teller.)
Bank of San Pedro hired you as a consultant and you are
responsible for estimating how much the We Pay While You
Wait program will cost. Your preliminary study indicates there
are, on average, 0.5 customers waiting in line. Assume linear
cost. If a customer waits for ten seconds in line, Bank of San
Pedro will pay $0.5. Assume that arrival follows Poisson and
service time follows exponential distribution.
Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 30
Problem 12
a) Compute the capacity of the teller
a) 10 customers/hour
b) 3.33 customers/hour
c) 20 customers/hour
d) 30 customers/hour
e) Cannot be determined

It takes the teller an average of 3 minutes to serve a


customer
60/3 = 20 customers per hour

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 31


Problem 12

b) Calculate the proportion of the time the teller is


busy.
a) 100%
b) 80%
c) 62%
d) 50%
e) 40%

R=10, Rp= 20
R/Rp= 10/20 = 0.5
= 50%

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 32


Problem 12

c) How long, on average, does a customer wait in line?


a) 6 minutes
b) 4.8 minutes
c) 3 minutes
d) 2.6 minutes
e) 2 minutes

0.52 11
Ii 0.5
(1 0.5) 2
Indeed Ii was even given in the problem.
Ti= Ii/R
Ti= 0.5/10 = .05
0.05(60) = 3 minutes

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 33


Problem 12
d) Calculate the expected hourly cost of the We Pay
While You Wait program.
a) $9
b) $36
c) $60
d) $90
e) $140
Ii =0.5. Therefore, a half of a customer is always there. For each
hour one customer gets 60(3) = $180. Thus 0.5 customer gets $90.
Perhaps you do not believe me.
Each customer waits, on average, 3 minutes.
So he or she receives, on average, 3(3) =$9.
There are 10 customers arriving per hour.
So the overall cost of this program is 9*10=$90.
Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 34
Problem 12
e) Suppose each additional clerk costs X dollars per hour
(including all other clerk related costs such as
benefits, space and equipment hourly costs).
Compute the maximum value of X if it is at our
benefit to hire one additional clerk?
If we have two clerks, Rp increases from 20 to 40, and
utilization drops from 0.5 to 10/40 = 0.25

0.25 2 ( 21)
Ii 0.045
(1 0.25)

Ii reduced from 0.5 customers to 0.045 customers =


0.455

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 35


Problem 12
The number of customers waiting in the line reduced by
0.455. This means each hour, there are 0.455 less
customers waiting in line.
The cost of each hour waiting per 1 customer is $180
The waiting cost of 0.455 customers is 180(0.455) =
81.96
If the additional clerk costs less than $81.96 per hour it
is at our benefit to hire her.
e) Suppose each additional clerk costs $30 per hour.
How many new clerk should we hire, one or two?
Obviously, it is at hour benefit to hire one clerk.
If we hire two clerks (to have 3 clerks), Rp increases to
60, and utilization drops 10/60 = 0.167
Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 36
Problem 12

0.167 2 (31)
Ii 0.008
(1 0.167)
Ii is reduced from 0.045 customers to 0.008, a 0.037
customer reduction.
By adding the third clerk, there are 0.037 less customers
waiting in line (each hour and always)
180(0.037) = about $6-$7
It is not at our benefit to hire the second clerk, pay $30
per hour capacity cost to reduce waiting cost by $6-$7
per hour.

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 37


Problem 12
We did not need to do this much computations for the
third clerk. With two clerks the total number of
customers waiting in line was:

0.25 2 ( 21)
Ii 0.045
(1 0.25)
Even if we reduce the number of customers waiting to 0,
we have reduced the line by 0.045 customers.
0.045(180) = 8.1
It is not worth the cost $30 to benefit $8

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 38


Problem 13
A local grocery store has 2 cashier stations, and 1
experienced cashier and 1 novice cashier. During a
typical working day (8 hours), 120 customers will show
up. The novice cashier will serve 48 customers and the
experienced cashier will serve 72 customers. On
average it takes 6 minutes for the novice cashier to
serve one customer and 3 minutes for the experienced
cashier to serve one customer.

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 39


Problem 13
a) During the rush hours, approximate 25 customers will show up in
an hour. Does the store have enough capacity for the rush hour?
a) Yes, the capacity of the store is 25 customers per hour.
b) Yes, the capacity of the store is 30 customers per hour.
c) No, the capacity of the store is 10 customers per hour.
d) No, the capacity of the store is 20 customers per hour.
e) None of the above.

On average it takes 6 minutes for the novice cashier to


serve a customer 60/6 = 10 customers/hr
On average it takes 3 minutes for the experienced
cashier to serve a customer 60/3 = 20 customers/hr
Capacity = 10+20 = 30

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 40


Problem 13
b) During the day, both cashier stations on average have 2
customers waiting. On average, how long does a customer stay in
the novice cashiers waiting line?
a) 8 minutes
b) 11 minutes
c) 16 minutes
d) 20 minutes
e) None of the above
The novice cashier will serve 48/8 = 6 customers/hr
R = 6 /hr
TiNR = IiN
6TiN = 2
TiN = 1/3 hr or 20 min
Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 41
Problem 13

c) On average, how long does a customer stay in the experienced


cashiers line?
a) 7 minutes
b) 9.4 minutes
c) 13.3 minutes
d) 15 minutes
e) None of the above

On the same token


the novice cashier will serve 72/8 = 9 customers/hr
R = 9 /hr
TR = I 9TiE = 2 TiE=2/9 hr or 13.33 min

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 42


Problem 13

d) On average, how long does a customer spend in the store?

The novice and experienced cashier serve 6, and 9


customers per hour, respectively.
Customers served by Novice: 6 min service time, 20
min waiting time. T = 26 min for 6/15 customers.
Customers served by Experienced: 3 min service time,
13.33 min waiting time. T = 16.33 for 9/15 customers.
(6/15)(26) + (9/15)(16.33) = 20.2

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 43


Problem 13

To shorten the waiting time, the manager does a detailed


study and finds that half of the customers purchase 5
items or less, and half of the customers purchase more
than 5 items. The manager decides to let the novice
cashier only serve the customers that purchase 5 items
or less. After the change, it turns out that both cashier
stations have 1.75 customers waiting on average.
Assume that the novice cashier serves all of the
customers purchasing 5 items or less and the
experienced cashier serves all of the customers
purchasing more than 5 items.

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 44


Problem 13
e) What is the average waiting time in the novice cashiers line?
a) 13 minutes
b) 14 minutes
c) 17 minutes
d) 19 minutes
e) None of the above

Each of the two cashiers will serve 120/2 = 60


customers per day or 60/8 =7.5 customers/hr
TiNR = IiN
7.5TiN = 1.75
TiN = 1.75/7.5 = 0.2333 hr or 14 min
Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 45
Problem 13

f) What is the average waiting time in the experienced cashiers


line?
a) 9 minutes
b) 11 minutes
c) 12 minutes
d) 14 minutes
e) None of the above

R and I are the same for Nave and Experience


Therefore, T is the same; 14 min

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 46


Problem 14

American Vending Inc. (AVI) supplies vending food to a


large university. Because students often kick the
machines out of anger and frustration, management has
a constant repair problem. The machines break down on
an average of 3/hr, and the breakdowns are distributed
in a Poisson manner. Downtime costs the company
$25/hr/machine, and each maintenance worker gets
$4 per hr. One worker can service machines at an
average rate of 5/hr, distributed exponentially; 2
workers working together can service 7/hr, distributed
exponentially; and a team of 3 workers can do 8/hr,
distributed exponentially. What is the optimal
maintenance crew size for servicing the machines?

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 47


Problem 14

Members in a team Demand Capacity U Ii Down Time Cost Capacity Cost Total Cost
1 3 5 0.600 0.90 22.5 4 26.5
2 3 7 0.429 0.32 8.0 8 16.0
3 3 8 0.375 0.23 5.6 12 17.6

c=????
c=1 U 2( c 1) U2
Ii
U=?? 1U 1U

Down time cost = 25Ii


Capacity Cost= 4(# of team members)

Total Cost
Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 48
Problem 14

Have I made any mistakes?


Downtime costs the company $25 /hr/machine.
When the machine is down?
Until it is up.
In the waiting line it is down. In the processor until the
end of the process it is down.
There fore, besides Ii, I also need Ip
Members Witing In Process Labor
in a team Demand Capacity U Ii Cost Cost Cost Total Cost
1 3 5 0.600 0.90 22.50 15.00 4 41.50
2 3 7 0.429 0.32 8.04 10.71 8 26.75
3 3 8 0.375 0.23 5.63 9.38 12 27.00

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 49


Problem 14

Lets check by using Ti and Tp instead of Ii and Ip


Members Witing In Process Labor
in a team Demand Capacity U Ii Cost Cost Cost Total Cost
1 3 5 0.600 0.90 22.50 15.00 4 41.50
2 3 7 0.429 0.32 8.04 10.71 8 26.75
3 3 8 0.375 0.23 5.63 9.38 12 27.00

In In
Waiting Waiting Processing Process Process
Members Cost Cost time (hr) / Cost Cost Labor Total
in a team Demand Capacity U Ii Ti /Machine /Hour Machine /Machine /hour Cost Cost
1 3 5 0.600 0.90 0.30 7.50 22.50 0.20 5.00 15.00 4.00 41.50
2 3 7 0.429 0.32 0.11 2.68 8.04 0.14 3.57 10.71 8.00 26.75
3 3 8 0.375 0.23 0.08 1.88 5.63 0.13 3.13 9.38 12.00 27.00

Operations Management: Waiting Lines 2 Ardavan Asef-Vaziri Jan-2011 50

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