Workers arrive at a tool crib at a rate of 30 per hour. Clerks who are employed to hand out the tools, can each serve 9 customers per hour & they earn $12 per hour, while workers make $30 per hour. What is the optimal number of clerks & what are the associated costs?
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- During nearly four decades of business operations, Memphis-based FedEx has earned a reputation for reliable, on-time delivery of packages to homes and offices around the country. Founder Fred Smith originally focused on overnight deliveries, choosing Memphis as the company’s headquarters because the airport rarely closes due to bad weather. With FedEx’s planes departing and arriving on schedule nearly all the time, its express shipments usually remained on schedule, then and now. To reassure customers that delivery will take place when and where promised, the firm offers a money-back guarantee on time-sensitive express shipments, among other services. FedEx has steadily expanded its portfolio of services since the 1970s. Its original overnight express delivery is currently available to U.S. customers in various forms, including “first-overnight” delivery, next-morning delivery, next-afternoon delivery, and budget-pleasing two- or three-day delivery. The company’s services also include cost-effective ground delivery for parcels and extra-speedy same-day delivery for urgent deliveries within 1,800 cities. Over the years, FedEx has widened its delivery network to more than 220 countries. It has purchased more cargo jets and acquired specialized shipping firms, including Tiger International, Roberts Express, RPS, and TNT Express, to support global growth. For international business customers needing products, parts, or raw materials shipped across countries or continents, the company now offers time-saving services such as commercial freight forwarding and cross-border logistical support. To add the convenience of local drop-off and pickup points for U.S. consumers and small businesses, FedEx acquired the Kinko’s office services company in 2004 and later rebranded it as FedEx Office. This acquisition also added printing and copying to the menu of services offered. Then the company arranged for large U.S. retailers such as Walgreens, Albertsons, Kroger, and Safeway to accept packages for shipment and receive package delivery for customer pickup in thousands of store locations. This means people who want to send a package can head to a nearby retailer and ship where they shop, rather than making a separate trip to the FedEx location. It’s also a safe alternative for packages to be picked up by people who don’t want FedEx shipments left by the front door. Another service FedEx offers to small and mid-sized businesses, including retailers, is FedEx Fulfillment. The purpose is to expedite order fulfillment by having each business store its products in a FedEx warehouse. Then, when the business’s customers place orders, FedEx puts the products into boxes bearing the business’s own logo and ships directly to those customers. The business doesn’t need a separate warehouse or staff for fulfillment, and packages are on their way to customers more quickly because the products were in FedEx’s warehouse, ready to be packed and shipped. This service puts FedEx into direct competition with Amazon.com, which offers a similar service to merchants that sell through the online Amazon Marketplace. But it also gives businesses that don’t sell via Amazon a fast and professional fulfillment alternative. FedEx is careful to let customers know, through media and social-media announcements, when it anticipates that extreme weather or other conditions will cause delays or force it to halt pickups and deliveries. For the duration of Hurricane Irma, for example, FedEx said it would suspend deliveries in Florida. Some Florida customers who had ordered generators to be delivered via FedEx were unhappy, because they worried about being without power during and after the storm. But one FedEx employee loaded several generator orders into his car and took them to customers himself. When a customer posted a grateful compliment to FedEx on Facebook, the message generated thousands of likes, shares, and positive comments. The company also received positive comments for its donations of cash and transportation services to areas devastated by Hurricanes Irma, Harvey, and Maria. According to the American Customer Satisfaction Index (ACSI), FedEx often tops the list of U.S. shipping companies as ranked by customers surveyed. Every day, the company delivers 13 million packages—and during the busy year-end holiday season, it delivers many more. By meeting customers’ expectations for on-time deliveries, FedEx has increased annual revenues beyond $60 billion and positioned itself for continued growth in the future. How does FedEx’s money-back guarantee address customers’ concerns about heterogeneity?Customers arrive at the rate of 15 per hour and the average processing time isthree minutes. What is the server’s utilization?Mr. E's cabinet-making shop, in Memphis, has five tools that automate the drilling of holes for the installation of hinges. These machines need setting up for each order of cabinets. The orders appear to follow the Poisson distribution, averaging 3 per 8-hour day. There is a single technician for setting these machines. His service times are exponential, averaging 2 hours each. a)What is the service factor for this system? b)What is the average number of these machines in service? c) What impact on machines in service would there be if a second technician were available?
- During the early morning hours, customers arrive at a branch post office at an average rate of 45 per hour (Poisson), while clerks can handle transactions in an average time (exponential) of 4 minutes each. Find: (a) The average number of customers waiting for service if 5 clerks are used. (b) The minimum number of clerks needed to keep the average waiting time in the system to under 5 minutes. (c) If clerk cost is $40 per hour and customer waiting time represents a “cost” of $30 per hour, how many clerks can be justified on a cost basis? Please show work.The office has a single line for customers waiting for the next available clerk. There are two clerks who work at the same rate. On average customers arrive every 8 minutes and the average service rate is 5 per hour for each of the two clerks. The arrival rate of customers follows a Poisson distribution, while the service time follows an exponential distribution. b.) What proportion of time are both clerks idle? c.) Counting each person being served and the people in line, on average, how many customers would be in this system?When customers arrive at Gilley’s Ice Cream Shop, theytake a number and wait to be called to purchase ice creamfrom one of the counter servers. From experience in pastsummers, the store’s staff knows that customers arrive atthe rate of 35 per hour (Poisson distributed) on summerdays between 3:00 P.M. and 10:00 P.M. and a server canserve 15 customers per hour on average (Poisson distributed). Gilley’s wants to make sure that customers wait nolonger than 5 minutes for service. Gilley’s is contemplatingkeeping three servers behind the ice cream counter duringthe peak summer hours. Will this number be adequate tomeet the waiting time policy?
- Determining the Number of ServersIn the service department of the Glenn-Mark Auto Agency, mechanics requiring parts for auto repair or service present their request forms at the parts department counter. The parts clerk fills a request while the mechanic waits. Mechanics arrive in a random (Poisson) fashion at the rate of 40 per hour, and a clerk can fill requests at the rate of 20 per hour (exponential).If the cost for a parts clerk is $30 per hour and the cost for a mechanic is $60 per hour, determine the optimum number of clerks to staff the counter. (Because of the high arrival rate, an infinite source may be assumed.)A small town with one hospital has 4 ambulances to supply ambulance service. Requests for ambulances during nonholiday weekends average 0.72 per hour and tend to be Poisson-distributed. Travel and assistance time averages 2.60 hours per call and follows an exponential distribution Use Table 18.4. a. Find system utilization. (Round your answer to the nearest whole percent.) System utilization b. Find the average number of customers waiting. (Round your answer to 3 decimal places.) Average number of customers c. Find the average time customers wait for an ambulance. (Round your answer to 3 decimal places.) Average time hourA vending machine dispenses hot chocolate or coffee. Service time is 35 seconds per cup and is constant. Customers arrive at a mean rate of 66 per hour, and this rate is Poisson-distributed. a. Determine the average number of customers waiting in line. (Round your answer to 2 decimal places.) Average number of customers ?? b. Determine the average time customers spend in the system. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Average time minutes ??