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ReviewQuestionsSession3

QuickLubeInc.
QuickLubeInc.operatesafastlubeandoilchangegarage.Onatypicaldaycustomersarriveatthe
rateofthreeperhour,andlubejobsareperformedatanaveragerateofoneevery15minutes.The
mechanicsoperateasateamononecaratatime.
A. AssumingPoissonarrivals(CVA=1)andexponentialservice(CVS=1)findtheaveragetimea
carwaitsbeforeitislubed.
B. AssumingPoissonarrivals(CVA=1)andexponentialservice(CVS=1)findtheaveragenumber
ofcarsinline.
Afterpurchasinganewmachinetheteamchangesitsoperatingprocedures.Withthisnewmachine
lubejobsarestillperformedatanaveragerateofoneevery15minutes.However,everylubejob
nowlastsexactly15minutes.
C. Whatwouldhappentotheaveragewaitingtime?
a)Itwoulddecrease.
b)Itwouldnotchange.
c)Itwouldincrease.
D. Whatwouldhappentotheaveragenumberofcarsinline?
a)Itwoulddecrease.
b)Itwouldnotchange.
c)Itwouldincrease.

Mr.Ks
Mr.Ksisapopularhairsalon,whichoffershighqualityhairstylingandphysicalrelaxationservices
atareasonableprice.Customersarriveonaverageevery25minutes.Theyareservedbyoneof3
employees,andthetotalservicetakesonaverage60minutes.Thecoefficientofvariationofthe
timebetweenarrivalsaswellasthatoftheprocessingtimeis1.2.
a) Howlongdocustomerswaitonaverage(ifnoneofthemleavesbeforebeingserviced),andhow
manycustomerswillonaveragebewaitingtobeserviced?
b) Howmanyadditionalserverswouldyouneedtohiresothatcustomerswaitonaverageno
longerthan10minutes?

Localbranchofabank
Alocalbranchofabankclaimsthatitscustomerswaitlessthan6minutes(onaverage)inthe
queueduringlunchtime(actually,thisisatwohourperiodbetween11:30and1:30).Theirrecord
showsthatonaverage60customersarriveduringthetwohourlunchtime.If7customers(on
average)arewaitinginthequeueduringthisperiod,istheestimateofaveragetimespentinthe
queuerealistic?Justifyyouranswer.

Inventoryturns
Supposeacompanyproduces100,000unitsayearandthattheinventoryturnoverforthiscompany
is40.InventoryTurnoverisdefinedasthenumberoftimesthatacompanysinventorycyclesor
turnsperyear.Whatistheannualinventoryholdingcostofthiscompany,iftheannualholdingcost
perunitis$15?

Maketoorderenvironment

Is the following statement true or false? Why?


In a maketo-order environment, the only viable strategy to reduce lead-time is to
increase capacity by adding more machines to each station.

NewStationonJubileeLine
ThecityofLondonhasjustdecidedtobuildanewundergroundstationontheJubileeLine,between
BakerStreetandStJohnsWood.ThenewstationlocatedinStJohnsWoodRoad,justopposite
theLordsCricketGround,willonlyservetheJubileeline.
MattRichardsonisinchargeofdesigningthelayoutforthisnewstationandheiscurrentlydealing
withtheplacementofescalators.Duetospaceconstraintsthestationcanaccommodateonlythree
escalators.Hence,twoconfigurationsarepossible,asindicatedinthefigurebelow.

railway

railway

platform

platform

hall

hall

street

street

CONFIGURATION A:

CONFIGURATION B:

1 UPWARD EXCALATOR

2 UPWARD EXCALATORS

2 DOWNWARD EXCALATORS

1 DOWNWARD EXCALATOR

WhichconfigurationshouldMattprefer?Why?
(Assumethatateverypointintimetheaveragenumberofincomingcustomersisequaltothe
averagenumberofoutgoingcustomers.Assumealsothatallescalatorsmoveatthesamespeedand
thattheplatformandthehallhaveapproximatelythesamesurface).

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