Op MGMT Assignment 3

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Answer to Question 1:

Given:
• Arrival rate (λ) = 40 customers per hour
• Service rate (μ) = 1 customer per 6.75 minutes = 60/6.75 = 8.89 customers per hour per
server
• Number of servers (c) = 5
a)
The average number of customers at the counter (L) can be calculated using the formula:
L = λW
where W is the average time, a customer spends in the system. W can be calculated as:
W = 1 / (μ - λ/c)
Substituting the given values, we find that on average, there were approximately 11.351
customers at the counter (including those being served).
b)
The average time a customer had to wait to be served (W) is approximately 0.176 hours, which is
equivalent to about 10.56 minutes.
c)
If a customer had to wait, the average wait time (Wq) can be calculated as:
Wq = W - 1/μ
Substituting the given values, the average wait time is approximately 3.3 minutes.
d)
The probability that a customer will have to wait for service (Pw) is approximately 0.529, or
52.9%.
e)
The total hourly cost for 5 employees is calculated as the sum of the cost of waiting customers
and the cost of employees:
Total hourly cost = Lq * cost per waiting customer per hour + c * cost per employee per hour
Substituting the given values, the total hourly cost for 5 employees is $160.13. By calculating the
total hourly cost for 6 and 7 employees, it was found that the cost is minimum for 6 employees
($142.60).
f)
With 6 employees, the performance measures are as follows:
• Average number of customers at the counter: 7.025
• Average time a customer had to wait to be served: 10.56 minutes.
• Average wait time if a customer had to wait: 3.3 minutes.
• Probability a customer will have to wait for service: 0.529, or 52.9%
This shows that adding an additional employee significantly reduces the waiting time and the
probability of a customer having to wait, thereby improving the café's service efficiency.

Answer to Question 2:

a)
b)
Material Requirements Plan for Supports:

Beg. Week Week Week Week Week Week Week Week Week
Inv. 1 2 3 4 5 6 7 8 9

Gross Requirements - 0 0 0 0 400 0 400 400 0

Scheduled Receipts - 0 0 0 0 0 0 0 0 0

Projected on hand 200 200 200 200 200 0 0 0 0 0

Net Requirements - 0 0 0 0 200 0 400 400 0

Planned order receipts


(LT = 1) - 0 0 0 0 200 0 400 400 0

Planned order releases


(Q = 100 /week) - 0 0 0 200 0 400 400 0 0

Material Requirements Plan for Seats:

Beg. Week Week Week Week Week Week Week Week Week
Inv. 1 2 3 4 5 6 7 8 9

Gross Requirements - 0 0 0 0 200 0 200 200 0

Scheduled Receipts - 0 0 0 0 0 0 0 0 0

Projected on hand 120 120 120 120 120 0 0 0 0 0

Net Requirements - 0 0 0 0 80 0 200 200 0

Planned order receipts


(LT = 1) - 0 0 0 0 100 0 200 200 0

Planned order releases


(Q = 50 /week) - 0 0 0 100 0 200 200 0 0
Answer to Question 3

a)
Given the revised plan of 200 golf carts at the start of week 8, we need to adjust the Material
Requirements Plan (MRP) for Tops and Bases.
Material Requirements Plan for Tops:

Beg. Week Week Week Week Week Week Week Week


Inv. 1 2 3 4 5 6 7 8

Gross Requirements - 0 0 0 0 0 0 0 200

Scheduled Receipts - 0 0 0 0 0 0 0 0

Projected on hand 40 40 40 40 40 40 40 40 0

Net Requirements - 0 0 0 0 0 0 0 160

Planned order receipts (LT =


1) - 0 0 0 0 0 0 0 160

Planned order releases


(L4L) - 0 0 0 0 0 0 160 0

Material Requirements Plan for Bases:

Beg. Week Week Week Week Week Week Week Week


Inv. 1 2 3 4 5 6 7 8

Gross Requirements - 0 0 0 0 0 0 0 200

Scheduled Receipts - 0 0 0 0 0 0 0 0

Projected on hand 20 20 20 20 20 20 20 20 0

Net Requirements - 0 0 0 0 0 0 0 180

Planned order receipts (LT =


1) - 0 0 0 0 0 0 0 180

Planned order releases


(L4L) - 0 0 0 0 0 0 180 0
b)
Given the change in the manufacturing process, we now need to adjust the MRP for Supports and
Seats to reflect lot-for-lot ordering.
Material Requirements Plan for Supports:

Beg. Week Week Week Week Week Week Week Week


Inv. 1 2 3 4 5 6 7 8

Gross Requirements - 0 0 0 0 0 0 0 800

Scheduled Receipts - 0 0 0 0 0 0 0 0

Projected on hand 200 200 200 200 200 200 200 200 0

Net Requirements - 0 0 0 0 0 0 0 600

Planned order receipts


(L4L) - 0 0 0 0 0 0 0 600

Planned order releases


(L4L) - 0 0 0 0 0 0 600 0

Material Requirements Plan for Seats:

Beg. Week Week Week Week Week Week Week Week


Inv. 1 2 3 4 5 6 7 8

Gross Requirements - 0 0 0 0 0 0 0 400

Scheduled Receipts - 0 0 0 0 0 0 0 0

Projected on hand 120 120 120 120 120 120 120 120 0

Net Requirements - 0 0 0 0 0 0 0 280

Planned order receipts


(L4L) - 0 0 0 0 0 0 0 280

Planned order releases


(L4L) - 0 0 0 0 0 0 280 0

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