Problem 2 (40 points) (chapter 4)

Write your answers on this sheet.

Show work on a separate sheet. No Work, then No Credit.

Doug Ricketts gas station in Olean, NY currently services an average of 75 customers a day.

Observations in recent weeks show that its utilization is at 80 percent allowing for just 20

percent capacity cushion. If demand is expected to be 60 percent of current levels in 5 years and

management wants to have a capacity cushion of just 7 percent. Go to two decimal places in all calculations.

A. How many customers on average are served per day. (This is not a trick question).

__________________ answer 10 points

B. What is the demand in 5 years?? _____________________ (go to two decimal places) This is not a percent. 10 points

C. What is the utilization rate expressed in percent in 5 years? _____________ (go to two decimal places).

10 points

D What capacity requirement should be planned for in 5 years? _______________ answer (go to two decimal places) 20 points

(Show your work below or on next page, guesses do not count)

Problem 3 (Chapter 4) 40 points

Write your answers on this sheet.

Show work on a separate sheet. No Work, then No Credit.

The Anderson Medical Hospital on Brooks Avenue has 36 labor rooms. The facility operates around the clock, (24 hours a day).

The average time spent in a labor room is 690 minutes. During an exceptional 4 day period 56 babies were born in the labor rooms.

A. How many labor rooms are there at Anderson Medical Hospital? (This is not a trick question)

__________________ answer (10 points)

B. Using above information, what is the current hospitals maximum capacity over the four days in hours? (10 pts)

________________________ answer (two decimal places) write in pen, units is hours.

C. What is the average time spent in the labor room expressed in hours. _____________ (go to two decimal places) (10 points)

D. Using above information, what is the utilization rate? Give answer as a percentage. Got to two decimal places. Write in pen. (10 pts)

__________________________ answer as a percentage (two decimal places) write in pen

Problem 4. (Chapter 6) 30 points

Write your answers on this sheet.

Show work on a separate sheet. No Work, then No Credit.

For this problem 1 day = 24 hours

Ricks vacuum of Muncie uses the pull method to supply hoses to an assembly line.

Rickss employee Dave Carey is in charge of the assembly line, which requires 900 hoses

per day. One containers typically waits 6 hours in the fabrication cell. Each container holds

400 hoses, and one container requires 43 hours in processing time. Setup time is zero.

Currently 5 containers are used for this item. 1 day is equal to 24 hours.

A. What is the average waiting time for one container expressed in days. _________________ answer (four decimal places) write in pen 10 points. Units is days.

B. What is the average processing time for one container expressed in days ______________ answer (four decimal places) 10 points. Units is days

C What is the value of the policy variable alpha?

Alpha is _________________ answer in percentage (go to four decimal places, write in pen) (10 points)