SCM 300 Module 5 Study Guide
SCM 300 Module 5 Study Guide SCM 300
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This 14 page Study Guide was uploaded by Nicolle Desmarais on Monday February 16, 2015. The Study Guide belongs to SCM 300 at Arizona State University taught by eduardo davila in Fall2014. Since its upload, it has received 1114 views.
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Date Created: 02/16/15
SCM 300 MODULE 05 Study Packet Module 05 Sell it and Service It WAITING LINES Waiting lines are something we encounter nearly everyday and nearly everywhere we go In this module we tried to demonstrate the different dynamics of different systems By altering arrival rates service rates number of sewers ordering of customer orders number of lines number of systems etc we demonstrated how customers and servers fared Each pays their own price and this modeling simply seeks to create an equilibrium that is acceptable to both parties Reading Assignments Concepts Terms and Lists 68 6779 7 71 68 Service Facility 69 Utilization 73 69 72 Examples 70 73 Single Server Model Use Lecture 73 Example 3 74 70 notation 75 Didn t read 7679 79 F 82 70 r 80 Waiting Line Theory applies to service and manufacturing firms It relates customer arrival and service system processing characteristics to servicesystem output characteristics The four elements of waiting lines 0 An input or customer population that generates potential customers 0 A waiting line for customers 0 The service facility consisting of a person or crew a machine or group of machines or both necessary to perform the service for the customer 0 Number of lines single vs multiple 0 A priority rule which selects the next customer to be served by the service facility According to the slides customers waiting lines servers and service facility Finite If the potential number of customers is appreciably affected by the number of customers already in the system the input source is said to be finite Jumbo jet airplanes Infinite The amount of customers already in the system does not affect the amount of possible new customers McDonald s all of our calculations will be infinite SCM 300 MODULE 05 Study Packet Balks an impatient customer who decides to not enter the system Reneges An impatient customer who leaves the system before being served Channel One or more facilities required to perform a service Phase A single step in providing a service Priority rules FCFS EDD earliest promised due date homework SPT shortest expected processing time Reservation or appointments emergency situations Preemptive discipline allows a customer of higher priority to interrupt service of another customer Ex Emergency room patient Vip lines or frequent flier miles Operating characteristics of waiting lines Line length short lines mean effective customer service or too much capacity Long lines mean not enough capacity or low server capacity Number of customer in a system Large number may result in congestion which will lead to poor customer satisfaction unless more capacity is added Waiting time in line long lines do not mean long waiting time When waiting time is long customers perceive service to be poor Walt Disney helps with long waiting times by showing videos during the line and informing customers how long the wait will be Total time in the system Total time of entry until exit of system If customers are spending too much time in system it may be necessary to change the priority rule add capacity or increase productivity Service facility utilization Management s goal is to maintain high utilization and profitability without adversely affecting the others operating characteristics Use these five characteristics when fronted with a problem with waiting lives Apply each characteristic a dollar value Decision Areas for Management After analyzing a waiting line problem management can improve the service system by making changes in one or more of the following areas Arrival rate Arrival rate can be affected through promotions advertising or differential pricing Number of service facilities By increasing facilities toll booths bank tellers or dedicating some facilities to a particular service management can increase capacity Number of phases Managers can decide to allocate service tasks to sequential phases if it would be more effective Changing the facility arrangement can increase service rate and capacity of the system Number of servers per facility can assign more than one server per facility Service efficiency motivate your workers through promotions devise improved work methods Priority rule Line arrangement single line or a line for each facility SCM 300 MODULE 05 Study Packet Terms Concepts and Philosophy behind Waiting Lines Slides 0310 Slide 36 0 Why is the study of waiting lines important in running a business Especially in America 0 We are wired for waiting lines and waiting lines are everywhere Make customers happy they are the key stakeholders Money is the key cost to keep the line short Equal rights no cutting long lines have no reasonable competitor Waiting in line is a very American concep OOOO Goals and Tradeoffs for Queuing system 0 What do managers have control over in a queuing system 0 What can managers do to make waits seem shorter to the customer What are some things that can make waiting times seem longer than they really are to the customer Why do customers have some degree of control over service rates 0 Define and discuss Arrival and Service Rates Single and Multiple Line Systems DisciplinePriority Rules Finite vs Infinite Populations Balking Reneging Jockeying Queuing Problems Slides 1135 and Problem Set Know how to do all of the problems on the Additional Problem Set Lab Exercise 3 VERY IMPORTANT GUSTDMERS DBJEGTITS Avg niuimber iin sgtem ll 5 i M u l 1 Avg number in queue fl p Iii l l u 3x J i i p n 5 TIME Avgtizme in EElemi t 5 a 1 it M Avg timein Queue t i pH in M1pll s Be able to solve all of these problem tvoes A Arrival and Service Rates Service Utilization Factor What are they Calculate them Be able to read Arrival and Service Rates Be able to covert to hour per minute and per second B Single Server Models Formulas n t l s P interpreting data C Multiple Server models Interpreting data Rather than making long lists concentrate on practicing problems Understand underlying themes SCM 300 MODULE 05 Study Packet SCM 300 MODULE 05 Study Packet Practice Questions Do vou understand the statistical material This mav help answer that question While this mav be useful for some students pleasi understand that some exam questions are verv likelv going to be much more difficult Use the following Table to answer questions 1 through 4 NUMBER OF SERVERS 1 2 3 RHO p 060 030 020 Po 0400 0538 0548 P1 0240 0323 0329 P2 0144 0097 0099 P3 0086 0029 0019 P4 0052 0009 0003 P5 0031 0004 0001 ts minutes 300 1319 1212 ns 1 50 0660 0606 L On average how much time does the average customer spend in the SYSTEM when there is ONE SERVER in the SYSTEM A 300 minutes B 150 minutes C 180 minutes D 090 minutes E 450 minutes 2 What percentage of the time would a server be busy in a FIVEserver model A 10 B 5 C 12 D 6 E Impossible to tell with information provided 3 What percentage of new arrivals are served immediately in a TWOserver model A 538 B 938 C 861 D 563 E None of the above 4 What is the probability in a single server model that at least one customer is in the system 40 60 24 76 None of the Above mpowgt 5 If one server can help 35 customers per hour and a new customer arrives every 4 minutes then what percentage of the time would the server be busy A 114 B 886 C 572 SCM 300 MODULE 05 Study Packet D 428 E 875 Answer Key1A 2C 3C 48 5D SCM 300 MODULE 05 Study Packet SELL IT Selling the product may sound like a job for marketing and sales but as we learned in lecture the operations and facilities associated with the sales process are vital to high sales volumes and satisfied customers In this lecture we learned how organizational strategy waiting line management facilities layoutdesign and human resources issues all aid in the creation of the sales environment Readinq Assiqnments Goals of a Sales Oriented ProcessesEnvironment Slides 3841 0 A sales organization that wants to maximize sales now and into the future should consider In other words what are the ingredientsgoals of a good sales environment 0 Consider the customer comfort level and value perception five senses 0 Profit sales costs 0 Control costs but deliver value 0 Avoid shrinkage theft deficits being obsolete o How are these issues related to the supply chain andor operations 0 Do you have inventory o Is it consumer friendly 0 Facility design 0 High quality employees 0 Good and consistent business process 0 Supporting in store technology 0 Increase sales 0 Control costs 0 Consistent branding and consistent in store experiences Facilities Design and Layouts Considerations Slides 4245 0 Slide 42 Why are most grocery stores organized like the grocery store depicted on slide 42 What is the strategic plan behind the location of each item in the grocery store in slide 42 0 Important layout considerations Strategies that should be considered in developing a retail layout Be able to recall different strategies used by different stores discussed in lecture 0 How does restaurant layout impact nearly every aspect of the service experience Consider the examples discussed in lecture 0 What s the difference between revenue and nonrevenue generating space 0 What are facilitating goods Why are they important to the company and the customer 0 Items that need to be kept in inventorv to maintain operations Important to customer expe ence Vendor Managed Inventory Slides 4647 0 What is VMI Inventory planning and replenishment system where suppliervendor accepts negotiated responsibilities that typically include monitoring and restocking 0 How can it benefit customers retailers and suppliers vendors Explain some of the challenges that companies that enter into VMI agreements must beware of SCM 300 MODULE 05 Problem Set Queuing Module 05 ADDITIONAL PROBLEM SET The Burger King in the ASUMU has only one person working at the register Customers arrive 12 per hour according to a Poisson distribution The Burger King employee on average can help 16 customers per hour according to an exponential distribution A B F What percentage of the time is the Burger King employee busy What is the average number of customers WAITING to be helped What is the average waiting time for customers in line In minutes If you plan on taking home your meal how long would you expect to be in the Burger King In minutes How many customers would have to be in the Burger King if you wanted 1 customer in the line What is the probability there is more than one person in the Line An operator in an office receives calls at a rate of 120 per hour according to a Poisson distribution The average time required to process a call is 20 seconds exponentially distributed Assuming that the singleserver waiting line model applies A B C D E What percentage of the time is the operator busy What is the average time a caller waits for an operator to answer In seconds What is the average number of calls in the system What is the probability that three or more calls are in the system What is the probability there are more than two people on hold The Ace Job Shop is made up of a production facility where machinists work In a nearby area the tool crib these machinists pick up their tools from an attendant at the tool crib The Ace Job Shop employs both the machinists and the tool crib attendants On average 8 machinists arrive at the tool crib every hour Each machinist is paid 18 per hour The supervisor can staff the crib with a junior attendant who is paid 1000hour and can process 10 arrivals per hour OR with a senior attendant who can process 12 arrivals per hour but is paid 1600hour If the supervisor wishes to minimize total operating costs which attendant should be selected and what would be the total estimated hourly cost at the tool crib Your company used to employ 1 computer technician Sandy at a cost of 20hour who could fix 32 computer problems per hour Sandy retired A new computer technician Seth has been hired at a cost of 30 per hour but he can fix 41 computer problems per hour On average 23 computer problems are reported every hour Employees that utilize a computer at our company are paid an average of 25 per hour According to this information did computer problems cost the company more when Sandy worked for the company or now that Seth has taken her position SCM 300 MODULE 05 Problem Set Queuing Module 05 ADDITIONAL PROBLEM SET KEYSOLUTIONS 1 BURGER KING PROBLEM 075 or 75 225 customers DO NOT ROUND AVERAGES 1125 minutes Don t forget to convert units to minutes 15 minutes 2 customers 04219 or 4219 TWPQFDFD 2 OPERATOR PROBLEM A 667 or 667 B 40 seconds C 20 Calls D 0297 or 297 E 0198 or 198 3 Job Shop Problem Visualizes the Tool Crib service area as depicted below M Machinist Line Tool Crib M M M M Attendant The key is you need to find ON AVERAGE how many machinists are in the system JUNIOR ATTENDANT SOLUTION nS A IJL 8 10 84Machinists Cost to operate Tool Crib PER HOUR 10 Jr Attendant 4 machinists 18 82hour SENIOR ATTENDANT SOLUTION nS A i H 8 12 8 2 Machinists Cost to operate Tool Crib PER HOUR 16 Sr Attendant 2 machinists 18 52hour THE SENIOR ATTENDANT SAVES YOU 30 per HOUR 4 Computer Technician Problem Same type of solution as in 3 System cost under Sandv 84 per hour Svstem cost under Seth 62 per hour SCM 300 MODULE 05 Problem Set Queuing Additional Problem Set Queuing Multiple Servers Suppose on average 17 customers arrive every hour and that in an 8 hour shift a server can help 200 customers Based on this information answer the questions that follow Average Time it takes to serve one customer in minutes 24 How often does a customer arrive in minutes 35 min Time Server Busy rho 68 0340 0227 IProbability of 0 32 493 505 1 21 76 335 344 2 148 114 117 3 1006 39 26 4 684 1 3 06 5 465 004 014 6 316 0004 003 In the system CUSTOMERS CUSTOMERS CUSTOMERS Number in System ns 213 077 0690 Number in Line nl 1448 009 0010 TIME Minutes TIME Minutes TIME Minutes Time in System ts 7500 2714 2435 Time in Line tI 51 0314 0035 BASICS 1 Find Lambda 7 2 Find Mu u 3 What is the Average Time it takes to serve one customer in minutes Fill in Chart 4 How often does a customer arrive in minutes Fill in Chart 5 Find Rho p for the single server model Fill in Chart 6 Find P0 to P6 for the single server model Find nl and tI Fill in Chart 7 In a singleserver model what is the average number of customers in line 8 In a singleserver model what is the average time a customer waits in line In minutes 9 In a mserver model what percentage of the time would a server be busy 10 In a threeserver model what is the probability that a customer gets served immediately SCM 300 MODULE 05 Problem Set Queuing USE THE CHART TO ANSWER THESE QUESTIONS 11 12 13 14 15 16 In a twoserver model what is the probability that there are 3 or more customers in the system In a singleserver model what is the probability there are exactly 2 people in line In a three servermodel what is the probability there are more then 2 customers in the line In a two server model how much time does a customer spend in the store from the moment they enter to the moment they leave the facility What is the fewest number of servers required if you39d prefer average waiting times to be less then 30 seconds What is the average time spent in the system in a threeserver model Give your answer in seconds Answer Key 1 17hr 2 25hr 3 240 min 4 353 min 5 068 or 68 6 P0 to P6 7 O 8 14 15 16 17 145 9 18 510 minutes 19 017 or 17 20 0966 or 966 21 0058 or 58 o 22 0101 or 101 10 23 00006 or 006 24 2714 minutes 25 2 Servers 188 seconds 26 1461 seconds 27 28 39 WI MIN 3333f 1quot PE PE Mim I n I 12 f MNElf HR 5 I FE Mir39iLlE FE MU yb 3H lltlr E1333f 51 i llF39s E erutE 1rquotth 29 practice problems Mrival ate hum w EEI Vi E Hate3912 hunt 15 Even more altn a gl tgmailrrl munME Time lug ti139 The it takes in Ewe Eu umeriln minim Pr halhi lit M n mimBWMi 30 31 1 In Einge WEE pmbdaiiiy HIquot 2 in line llnT39 quot uhat39apmb liWuflin line 3 In THREE i J what39 mrulzwdzliligurdr 1 in Una 4 In THFlE E Spain in LINE 5 In T3 i 1 haw are min Una 32 34 1 99 2 37 3 06 4 0056 Min 5 008
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