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Homework 2 This Is An Individual Assignment Question 1 (10 Points)

This homework assignment contains 4 questions covering topics in operations management including queuing models, inventory management, and decision making under uncertainty. Question 1 involves calculating performance measures for a typist serving 5 executives. Question 2 analyzes queuing at a burrito shop. Question 3 models customer flow at a café with grill, deli, and cashier stations. Question 4 addresses reorder point calculation and determining optimal production quantity under uniform demand uncertainty.

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amrita
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73 views

Homework 2 This Is An Individual Assignment Question 1 (10 Points)

This homework assignment contains 4 questions covering topics in operations management including queuing models, inventory management, and decision making under uncertainty. Question 1 involves calculating performance measures for a typist serving 5 executives. Question 2 analyzes queuing at a burrito shop. Question 3 models customer flow at a café with grill, deli, and cashier stations. Question 4 addresses reorder point calculation and determining optimal production quantity under uniform demand uncertainty.

Uploaded by

amrita
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Homework 2

This is an individual assignment

Question 1 [10 points]


Five executives share the services of a typist. The average number of jobs submitted for typing is six per
day per executive and a job takes 15 minutes on average to type. Compute the following performance
measures for the typist: the average utilization, the average waiting time for each job, and the average
number of jobs waiting to be typed. A day consists of 8 hours. Assume that arrivals are Poisson and that
service times follow a negative exponential distribution.

Question 2 [10 points]


Customers arrive at a local burrito shop every 10 minutes on average with a standard deviation of
4 minutes. The shop has one employee working at the counter to prepare and serve burritos. It
takes 5 minutes on average to process a customer’s order and the standard deviation of the
service time is 2 minutes. Based on this information, please answer the following questions.
a. What is the utilization of the employee? (4 points)
b. On average, how long does a customer wait in line before getting served? Hint: Use the
𝜌 𝐶𝑉𝑎2 +𝐶𝑉𝑠2
following formula to calculate the waiting time in queue, Wq = M (1−𝜌) ( ). Here
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CV = coefficient of variation calculated as mean by standard deviation. (4 points)
c. What is the average number of customers in the burrito shop (including the customer
being served at the counter)? (4 points)

Question 3 - Café Sarovar [20 points]

During the busy lunch period at Café Sarovar, customers arrive at a rate of 200 customers/hour.
Studies have indicated that 30% of the customers order their lunch from the Grill, and 50% of
customers get lunch from the Deli (the remaining 20% just get self-service items). All customers
pay for their food at the cash register. On average, the grill-chef takes 40 seconds to serve a
customer, the deli-chef takes 30 seconds, and the cashier takes 12 seconds. Please assume that all
service time and interarrival times are exponentially distributed, and that there is one employee
at each of the three stations.

a. What is the average throughput time (including both waiting and service time) at the Grill?
The Deli? The Register? (10 points)

b. How long does the average customer spend at Café Sarovar (please don’t count the time
walking from one spot to another or getting self-service items)? (5 points)

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c. As manager of Café Sarovar, you have been authorized by the state legislature (all salary
increases must be approved by this body) to give a performance bonus to one of your
employees. This bonus will cause the employee to work 10% faster. Which employee -
grill-chef, deli-chef, or cashier - should receive this bonus?
In addition to any calculations you perform, please give one sentence justification for your
choice. (5 points)

Question 4 – Inventory Stocking [20 points]

a) The annual demand for a product is 15,600 units. The weekly demand is 300 units with a
standard deviation of 90 units. The cost to place an order is $31.20, and the time from
ordering to receipt is four weeks. The annual inventory carrying cost is $0.10 per unit.
Find the reorder point necessary to provide a 98 percent cycle service level. (5 points)

b) Jane Tarheel is producing “Beat Dook” T-shirts to see outside the Dean Dome before the
big game. She plans to sell the t-shirts, which cost her $6 to make, for $12. Rose’s
Department Store has offered to purchase any leftover t-shirts for $2. Jane isn’t sure how
much demand will exist for her shirts, but she knows it will be between 100 and 300
shirts. Lacking any better information, she assume any value within that range is equally
likely (i.e., demand is distributed uniformly between 100 and 300). How many shirts
should Jane produce? (5 points)

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