Service Management Operations Strategy Information Technology 5th Edition James A Fitzsimmons - Solutions

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committee has been instructed to consider only machines that will yield an average turnaround time (i.e., expected time in the system) of 5 minutes or less. What is the smallest processing rate per hour that can be considered?
Past records show that the average student arrival rate is 24 per hour, Poisson distributed, and that the service times are distributed exponentially. The selection
16.2. A business school is considering replacing its copy machine with a faster model.
b. The management is interested in adding another mechanic when the customer’s average time in the system exceeds 90 minutes. If business continues to increase, at what arrival rate per hour will an additional mechanic be needed?
a. On arrival at the garage, how many customers should one expect to find in the system?
16.1. A general-purpose auto-repair garage has one mechanic who specializes in muffler installations. Customers seeking service arrive at an average rate of 2 per hour, with a Poisson distribution. The average time to install a muffler is 20 minutes, with negative exponential distribution.
5. Discuss how the M / G / model could be used to determine the number of emergency medical vehicles required to serve a community.
4. What are some disadvantages associated with the concept of pooling service resources?
3. For a queuing system with a finite queue, the arrival rate can exceed the capacity to serve. Use an example to explain how this is possible.
Facility and Process Flows,” and suggest other reservations about this planning exercise.
2. Example 16.1 presented a naive capacity planning exercise and was criticized for using averages. Recall the concept of a “bottleneck” from Chapter 7, “The Supporting
Under the pressure of long waiting lines, servers may speed up, spending less time with each customer, and, thus, increase service capacity. A gracious and leisurely manner,
Excessive waiting, if known or observed by potential customers, will cause them to reconsider their need for service and, thus, will reduce demand.
Queue discipline. First-come, first-served (FCFS
Queue configuration. Single waiting line with no restrictions on length and no balking or reneging.
Calling population. An infinite or very large population of callers arriving. The callers are independent of each other and not influenced by the queuing system (e.g., an appointment is not required).Arrival process. Negative exponential distribution of interarrival times or Poisson distribution of
Consequently, Xerox performed a queuing analysis to determine the best way to resolve its dilemma. Initial constraints, primarily involving human factors such as some loss of
Compromising the level of service meant that customers would have to wait, which would translate in this case into lost revenue for the customer (and, indirectly, for Xerox).
Xerox Corporation faced precisely this dilemma when it introduced the Model 9200 Duplicating System. 1 Its existing service and maintenance operation, which consisted of individual technical representatives serving individual territories, no longer was able to provide the level of service that gave
The capacity planning decision involves a trade-off between the cost of providing a service and the cost or inconvenience of customer waiting. The cost of service capacity is determined by the number of servers on duty, whereas customer inconvenience is measured by waiting time. Figure 16.1
Use queuing models and various decision criteria for capacity planning.
Describe the relationships between queuing system characteristics.
Use queuing models to calculate system performance measures.
Describe a queuing model using the A / B / C notation.
Discuss the strategic role of capacity planning.
Briefly assess the potential problems you see in applying critical path analysis to the sketch plan for moving Whittier County Hospital
1.The board of directors has said that it would like to try to move on a Sunday to minimize interference with weekday traffic. If there are Sundays that fall 46, 53, 60, 67, and 74 days from now, determine the probability (using a normal distribution) of reaching basic operational status at the new
Assume that you are part of the management staff whose task is to develop this sketch plan. Using Microsoft Project, develop the PERT network as outlined above, identify the critical path, and determine the expected time to reach basic operational status at the new facility.
under way at the new location once the first six activities are complete, and this is the critical goal established by the hospital’s board of directors. The new location, of course, will not be fully operational until the remaining, noncritical equipment and supplies are moved.
Once the construction and equipment checkout is completed, the new facility must be cleaned thoroughly by hospital staff before the actual move so that it will conform to the required levels for such institutions. Also,• after the contractor vacates the premises, the employees can be oriented to
Coordinate the admissions and exchange procedures during the transition period with other hospitals in the surrounding area; this is estimated to take at least 2, probably 3, and at most, 5 days.
Coordinate the procedures with, and determine the responsibilities of, the local police and fire departments; this is estimated to take at least 3, probably 5, and at most, 10 days.
Negotiate with professional moving companies for transferring equipment, records, and supplies; this is estimated to take at least 4, probably 5, and at most, 8 days.
Negotiate with local EMS and private ambulance services for transferring the patients; this is estimated to take at least 10, probably 14, and at most, 20 days.
Develop information and generate media coverage for the upcoming events; this is estimated to take at least (and probably) 2 days, and 3 days at most.
Develop and distribute an information newsletter to all hospital employees outlining the general procedures, with specific procedures attached for each department; it is estimated that this will take at least 3, probably 4, and at most, 7 days.
Using the original network and critical path, what strategies could management consider to complete the pro
if delivery of the hardware were delayed by 30 days? Would the critical path change?
The elapsed time for delivery of the hardware is estimated at 90 days. Would the project completion time be affected 1.2.
Using Microsoft Project, prepare a network and identify the critical path activities, the expected project duration, and scheduling times for all activities.
16.18. Leapyear Tire is interested in carrying insufficient numbers of budget tires de- liberately. If a customer finds a budget tire is not available, a salesperson will try to sell a more expensive substitute tire, but if this strategy fails, the customer is placed on a waiting list and notified
16.17. A wholesaler encounters a constant demand of 200 cases of one brand and box size of soap flakes per week from his retail accounts. He obtains the soap flakes from the manufacturer at $10 per case after paying the transportation costs. The average cost of each order placed is $5, and he
16.16. To limit dependence on imported oil, the Four Corners Power Company has de- cided to cover a fixed part of the regional demand for electricity by using coal. The annual demand for coal is estimated to be 500,000 tons, which are used uniformly throughout the year. The coal can be strip-mined
16.15. The Gilbert Air Conditioning Company is considering purchase of a special shipment of portable air conditioners from Japan. Each unit will cost Gilbert $80 and be sold for $125. Gilbert does not want to carry over surplus air condi- tioners to the following year. Thus, all surplus units will
16.14. The J & B Card Shop sells calendars with different coral reef pictures shown for each month. The once-a-year order for each year's calendar arrives in September. From past experience, the September-to-July demand for these calendars can be approximated by a normal distribution with mean of
16.13. The A & M Hobby Shop carries a line of radio-controlled model racing cars. Demand for these cars is assumed to be a constant rate of 40 cars per month. The cars cost $60 each, and ordering costs are approximately $15 per order re- gardless of the order size. Inventory carrying costs are 20
16.12. Suppose the XYZ Company, which has an annual demand of 12,000 units per year, order cost of $25, and annual holding cost per unit of $0.50, decides to op- erate with a planned shortage inventory policy with the backorder cost esti- mated as $5 per unit per year.a. Determine the EOQ.b.
16.11. The Supermart Store is about to place an order for Valentine's Day candy. The candy can be bought for $1.40 per box, and it is sold for $2.90 per box up to Valentine's Day. After Valentine's Day, any remaining boxes are sold for $1.00 each. All surplus candy can be sold at this reduced
16.10. A popular item stocked by the Fair Deal Department Store has an annual de- mand of 600 units. The cost to purchase these units from the supplier is $20 per unit and $12 to prepare the purchase order. The annual inventory holding cost is 20 percent of the purchase cost. The manager tries to
16.9. River City Cement Co. maintains an inventory of lime that is purchased from a local supplier. River City uses an average of 200,000 pounds of lime annually in its manufacturing operations (assume 50 operating weeks per year). The lime is purchased from the supplier at a cost of $0.10 per
16.8. The daily demand for an item is distributed normally, with a mean of 5 and a variance of 2. The cost to place an order is $10, and the carrying charge per day is estimated at 10 percent of the inventory value. The supplier has offered the following purchase plan: [$15 if Q
16.7. Monthly demand for an inventory item is a normally distributed random variable with a mean of 20 units and a variance of 4. Demand follows this distribution every month, 12 months a year. When inventory reaches a predetermined level, an order for replenishment is placed. The fixed ordering
16.6. Spanish Interiors imports ceramic floor tiles from Mexico with various patterns in anticipation of contractor needs. These tiles usually are ordered a year before delivery, and the production run for each tile pattern requires a separate setup. Therefore, the orders must be large to defray
16.5. Books-to-Go, Inc., has a recurring problem of clearing its shelves of hardcover books once the publisher releases the paperback edition. These books take up shelf space, and the sales are slow. More important, however, they tie up capital with which to buy new bestsellers. Typically,
16.4. The local distributor for Macho Heavy Beer is reconsidering its inventory pol- icy now that only kegs will be sold. The sales forecast for next year (200 days) is 600 kegs. The cost to store a keg of Macho in a refrigerated warehouse is ap- proximately $3 per year. Placing an order with the
16.3. Dutch Farms imports cheese by the case from Holland for distribution to its Texas retail outlets. During the year (360 days), Dutch Farms sells 1,080 cases of cheese. Because of spoilage, Dutch Farms estimates that it costs the firm $6 per year to store a case of cheese. The cost to place an
16.2. Deep Six Seafood, a restaurant that is open 360 days a year, specializes in fresh Maine lobsters at a cost of $10 each. Air freight charges have increased signifi- cantly, and it now costs Deep Six $48 to place an order. Because the lobsters are shipped live in a saltwater tub, the order cost
16.1. Annual demand for the notebook binders that Ted's Stationery Shop sells is 10,000 units. Ted operates his business on a 200-workday year. The unit cost of a binder is $2, and the cost of placing an order with his supplier is $0.40. The cost of carrying a binder in stock for one year is 10
7. Service capacity (e.g., seats on an aircraft) has characteristics similar to inventories. What inventory model would apply?
6. How is a service level determined for most inventory items?
5. How valid are the assumptions for the simple EOQ model?
4. Discuss how information technology can help to create a competitive advantage. through inventory management.
3. Compare and contrast a continuous review inventory system with a periodic review inventory system.
2. How would one find values for inventory management costs?
1. Discuss the functions of inventory for different organizations in the supply chain (i.e., manufacturing, suppliers, distributors, and retailers).
8. Describe the rationale behind the retail discounting model.
7. Use either expected value or incremental analysis to determine the order quantity for the single-period inventory model.
6. Conduct an ABC analysis of inventory items.
5. Design a continuous or periodic review inventory-control system.
4. Determine the reorder point and safety stock for inventory systems with uncertain demand.
3. Determine the order quantity for various inventory applications.
2. Describe the function, characteristics, and costs of an inventory system.
1. Discuss the role of information technology in the management of inventory.
8. What advantages and disadvantages are there to start- ing work at 8 AM?
7. Would your routes be modified if the employees living at locations 2 and 5 volunteered to use their compact cars and left from home to begin pickups?
6. At what time would the compact car need to leave the office to begin its pickups to be finished by 8 AM? By 9 AM?
5. If the compact car were used, what routes would you recommend to minimize the gasoline expense? What would the daily cost of gasoline be for this proposal?
4. If the employee living at location 6 offered to keep the van overnight, how is the route changed? To use the C-W algorithm, what must we now consider to be the origin?
3. What time would the van need to leave the office to re- tum with all employees by 8 AM? By 9 AM?
2. Find the least costly route for a car pool using the nine- passenger van. What would be the cost of gasoline per day for this arrangement?
1. What is the total cost of gasoline per day under the cur- rent arrangement of employees driving their own cars? Assume that fuel economy is 10 miles per gallon.
15.8. The city refuse collection department uses a fleet of small trucks that collect trash around the city and make periodic deliveries to four staging sites. Currently, two dump trucks transport the trash from these staging sites to an incinerator. One truck is assigned to service sites 1 and 2
15.7. Wal-Mart has five distribution centers and one central warehouse. Below are the distances between all nodes (0=-warehouse). Construct the net savings matrix for this problem, and determine a route to minimize the distance traveled to serve all five distribution centers. 0-1 10 mi 1-2 7 mi 2-4
15.6. A university is planning to serve four off-campus apartments with a shuttle bus service. Given the net savings matrix below, recommend a bus route that mini- mizes the distance traveled. 1 2 3 4 1 9 14 2 24 16 7 3 11
15.5. The Lone Star Beer distributor makes deliveries to four taverns from a central warehouse, as shown in the figure below. Distances are given in miles.a. Construct a shortest-route matrix for travel between all pairs of locations.b. Construct a net savings matrix.c. Recommend a delivery route
15.4. A florist has received orders to deliver flowers to four office buildings. The ma- trix below contains the shortest distance in miles between the florist's shop and the offices. Construct a net savings matrix and recommend a route to minimize the distance traveled. 0 - 60 1 2 3 N6 4 6 9 8 7
15.3. The New York Times delivery service has customers at four apartments in the north- west part of town. Recommend an efficient route given the shortest-distance matrix in miles below for travel from the distribution center to and between the apartments. 2 3 4 0 6 79 8 1 12 13 12 2 8 9 3 14
15.2. For the following net savings matrix, find the recommended route. 1 2 3 4 1 2 4 3 2 57 3 2
15.1. For the following net savings matrix, find the recommended route. 1 2 3 4 1 3 2 7 27 2 5 9 3 8
3. Discuss the implications of service outsourcing on employees, stockholders, cus- tomers, and host country economy when a firm outsources a call center overseas.
2. Discuss the similarities and differences in the product postponement strategy used by Hewlett-Packard and Taco Bell.
1. What are some possible disadvantages associated with the product postponement strategy?
6. Prepare a delivery route using the Clarke-Wright algorithm.
5. Discuss the challenges of delivering services in the field.
4. Discuss the managerial considerations to be addressed in outsourcing services.
3. Classify business services based on the focus of the service and its importance to the outsourcing organization.
2. Discuss the challenges of managing service supply relationships.
1. Contrast the supply chain for physical goods with the customer-supplier duality of services.
4. The clinic is considering adopting a queue priority sys- tem that is determined by the time of entry into the sys- tem at the receptionist. How might patients waiting for the doctor react to this policy?
3. What would be the impact on the above calculations of adding a second doctor to the clinic and sharing the doc- tor queue between them on a "first MD available" basis?

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Service Management Operations Strategy Information Technology 5th Edition James A Fitzsimmons - Solutions

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