e Process Q1. Short Answers What is the service package of your college or university? Some suggest that customer expectation is the key to service success. Give an example from your own experience to support or refute this assertion. Why should a manager of a bank home office be evaluated differently than a manager of a bank branch? Q2. If the average time between customer arrivals is 8 minutes, what is the hourly arrival rate? How much time on average would a server need to spend on a customer to achieve a service rate of 20 customers per hour? Q3. Students arrive at the Administrative Services Office at an average of one every 15 minutes, and their requests take on average 10 minutes to be processed. The service counter is staffed by only one clerk, Judy Gumshoes, who works eight hours per day. Assume Poisson arrivals and exponential service times. What percentage of time is Judy idle? How much time, on average, does a student spend waiting in line? How long is the (waiting) line on average? Q4. Burrito King (a new fast-food franchise opening up nationwide) has successfully automated burrito production for its drive-up fast-food establishments. The Burro-Master 9000 requires a constant 45 seconds to produce a batch of burritos. It has been estimated that customers will arrive at the drive-up window according to a Poisson distribution at an average of one every 50 seconds. To help determine the amount of space needed for the line at the drive-up window, Burrito King would like to know the expected average time in the system, the average line length (in cars), and the average number of cars in the system (both in line and at the window). BUS3500 Operations Management _ Assignment 4 Hanson College _ Winter 2021 2 Q5. A toll tunnel has decided to experiment with the use of a debit card for the collection of tolls. Initially, only one lane will be used. Cars are estimated to arrive at this experimental lane at the rate of 750 per hour. It will take exactly four seconds to verify the debit card. In how much time would you expect the customer to wait in line, pay with the debit card, and leave? How many cars would you expect to see in the system? Unit 10: Sales and Operations Planning Q1. Short Answers List at least three of the four costs relevant to the aggregate production plan. Define yield management. How does it differ from the pure strategies in production planning? How would you apply yield management concepts to a barbershop? A soft drink vending machine? Q2. Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 10,000; winter, 8,000; spring, 7,000; summer, 12,000. Inventory at the beginning of fall is 500 units. At the beginning of fall you currently have 30 workers, but you plan to hire temporary workers at the beginning of summer and lay them off at the end of summer. In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring if overtime is necessary to prevent stockouts at the end of those quarters. Overtime is not available during the fall. Relevant costs are hiring, $100 for each temp; layoff, $200 for each worker laid off; inventory holding, $5 per unit-quarter; backorder, $10 per unit; straight time, $5 per hour; overtime, $8 per hour. Assume that the productivity is 0.5 unit per worker hour, with eight hours per day and 60 days per season.
Breakeven Analysis
Break Even Analysis is a term used in business, cost accounting and economics. It refers to a point where the total cost incurred becomes equal to the total revenue earned. Break Even Analysis determines the number of units to be sold to earn the revenue required to cover the total costs. Total cost is a sum total of fixed and variable costs.
Process analysis
The term process analysis can be defined as breakdown of production process into different phases that converts inputs into output. A series of routine activities are incorporated using organizational resources with a view to achieve operational excellence.
e Process
Q1. Short Answers
- What is the service package of your college or university?
- Some suggest that customer expectation is the key to service success. Give an example from your
own experience to support or refute this assertion.
- Why should a manager of a bank home office be evaluated differently than a manager of a bank
branch?
Q2.
- If the average time between customer arrivals is 8 minutes, what is the hourly arrival rate?
- How much time on average would a server need to spend on a customer to achieve a service rate
of 20 customers per hour?
Q3. Students arrive at the Administrative Services Office at an average of one every 15 minutes, and their
requests take on average 10 minutes to be processed. The service counter is staffed by only one
clerk, Judy Gumshoes, who works eight hours per day. Assume Poisson arrivals and exponential
service times.
- What percentage of time is Judy idle?
- How much time, on average, does a student spend waiting in line?
- How long is the (waiting) line on average?
Q4. Burrito King (a new fast-food franchise opening up nationwide) has successfully automated burrito
production for its drive-up fast-food establishments. The Burro-Master 9000 requires a constant 45
seconds to produce a batch of burritos. It has been estimated that customers will arrive at the drive-up
window according to a Poisson distribution at an average of one every 50 seconds. To help determine
the amount of space needed for the line at the drive-up window, Burrito King would like to know the
expected average time in the system, the average line length (in cars), and the average number of cars
in the system (both in line and at the window). BUS3500 Operations Management _ Assignment 4
Hanson College _ Winter 2021
2
Q5. A toll tunnel has decided to experiment with the use of a debit card for the collection of tolls. Initially,
only one lane will be used. Cars are estimated to arrive at this experimental lane at the rate of 750 per
hour. It will take exactly four seconds to verify the debit card.
- In how much time would you expect the customer to wait in line, pay with the debit card, and
leave?
- How many cars would you expect to see in the system?
Unit 10: Sales and Operations Planning
Q1. Short Answers
- List at least three of the four costs relevant to the aggregate production plan.
- Define yield management. How does it differ from the pure strategies in production planning?
- How would you apply yield management concepts to a barbershop? A soft drink vending
machine?
Q2. Develop a production plan and calculate the annual cost for a firm whose demand
10,000; winter, 8,000; spring, 7,000; summer, 12,000. Inventory at the beginning of fall is 500 units.
At the beginning of fall you currently have 30 workers, but you plan to hire temporary workers at the
beginning of summer and lay them off at the end of summer. In addition, you have negotiated with the
union an option to use the regular workforce on overtime during winter or spring if overtime is
necessary to prevent stockouts at the end of those quarters. Overtime is not available during the fall.
Relevant costs are hiring, $100 for each temp; layoff, $200 for each worker laid off; inventory holding,
$5 per unit-quarter; backorder, $10 per unit; straight time, $5 per hour; overtime, $8 per hour. Assume
that the productivity is 0.5 unit per worker hour, with eight hours per day and 60 days per season.
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