The Friendly Neighbor Grocery Store has a single checkout stand with a full-time cashier. Customers arrive randomly at the stand at a mean rate of 20 per hour. The service-time distribution is exponential, with a mear of 2 minutes. This situation has resulted in occasional long lines and complaints from customers. Therefore, because there is no room for a second checkout stand, the manager is considering the alternative of hiring another person to help the cashier by bagging the groceries. This help would reduce the expected time required to process a customer to 1.5 minutes, but the distribution still would be exponential. The manager would like to have the percentage of time that there are more than two customers at the checkout stand down below 25 percent. (a) Use the formulas for the M/M/1 model to calculate L, W, Wa, La, Po, P₁, and P₂ for the current mode of operation. What is the probability of having more than two customers at the checkout stand? (b) Repeat part (a) for this alternative. (c) Which approach should the manager use to satisfy her criteria as closely as possible?
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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?At a one man barber shop, customers arrive according to poison distribution with a mean arrival rate of 5 per hour and hair cutting time was exponentially distributed with an average hair cutting time was exponentially distributed with an average hair cut taking 19 minutes. It is assumed that because of excellent reputation, customers were always willing to wait. Calculate the following a. Average number of customers in the shop and average numbers waiting for a haircut b .Percentage of time arrival can walk in right without having to wait c. The percentage of customers who have to wait before getting into the barber’s chairDetermining 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.)
- 6. The Security & Trust Bank employs 4 tellers to serve its customers. Customers arrive according to a Poisson process at a mean rate of 2 per minute. However, business is growing and management projects that the mean arrival rate will be 3 per minute a year from now. The transaction time between the teller and customer has an exponential distribution with a mean of 1 minute. Management has established the following guidelines for a satisfactory level of service to customers. The average number of customers waiting in line to begin service should not exceed 1. At least 90 percent of the time, the number of customers waiting in line should not exceed 3. (a) Use the Excel sheet to evaluate how well the guidelines will be satisfied a year from now if no change is made in the number of tellers.Customers arrive at the lobby of the exclusive and expensive Ritz Hotel at the rate of 40 per hour (Poisson distributed) to check in. The hotel normally has three clerksavailable at the desk to check guests in. The average timefor a clerk to check in a guest is four minutes (exponentially distributed). Clerks at the Regency are paid $12 perhour and the hotel assigns a goodwill cost of $2 per minutefor the time a guest must wait in line. Determine if the present check-in system is cost effective; if it is not, recommend what hotel management should do6. The Garrett-Tompkins Company provides three copy machines in its copying room for the use of its employees. However, due to recent complaints about considerable time being wasted waiting for a copier to become free, management is considering adding one or more additional copy machines. During the 2,000 working hours per year, employees arrive at the copying room according to a Poisson process at a mean rate of 40 per hour. The time each employee needs with a copy machine is believed to have an exponential distribution with a mean of 4 minutes. The lost productivity due to an employee spending time in the copying room is estimated to cost the company an average of $40 per hour. Each copy machine is leased for $4,000 per year. Find the following values for this system: λ, μ, Cs, Cw. Then use the Excel template to determine how many copy machines the company should have to minimize its expected total cost per hour. List your result in the following table. : S 3 4 5 P E(TC) = E(SC) + E…
- A tax consulting firm has 5 counters in its office to receive people who have problems concerning their income, wealth and sales taxes. On the average 75 persons arrive in an 8hour day. Each tax adviser spends 25 minutes on an average on an arrival. If the arrivals are Poissonly distributed and service times are according to exponential distribution, find The probability of there being no customer in the system The average number of customers in the system iii. Average number of customers waiting to be served iv. Average time a customer spends in the system v. Average waiting time for a customerProblem 15-9 (Algorithmic) Marty's Barber Shop has one barber. Customers have an arrival rate of 2.1 customers per hour, and haircuts are given with a service rate of 5 per hour. Use the Poisson arrivals and exponential service times model to answer the following questions: d. round your answer to four decimal places. What is the c. What is the P3- a haircor and no one is waiting if req d. What is the probability that one customer is receiving a haircut and two customers are waiting? If required, round your answer to four decimal places. Wq- customer is waiting? If rec e. What is the probability that more than two customers are waiting? If required, round your answer to four decimal places. P(More than 2 waiting) - f. What is the average time a customer waits for service? If required, round your answer to four decimal places. hours mal places.4.) The DMV Licensing 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. a.) What percentage of the total available service time is being used? b.) Due to Covid restrictions, only two customers are allowed in the office at the same time. What percent of the time will there be customers waiting outside?
- 8. A certain small grocery store has a single checkout stand with a full-time cashier. Customers arrive at the stand "randomly" (i.e., a Poisson input process) at a mean rate of 20 per hour. When there is only one customer at the stand, she is processed by the cashier alone, with an expected service time of 2 minutes. However, the stock boy has been given standard instructions that whenever there is more than one customer at the stand, he is to help the cashier by bagging the groceries. This help reduces the expected time required to process a customer to 1 minute. In both cases, the service-time distribution is exponential. (a) Construct the rate diagram for this queueing system.Drivers who come to get their licenses at the department ofmotor vehicles have their photograph taken by an automatedmachine that develops the photograph onto the license cardand laminates the complete license. The machine requires aconstant time of 4.5 minutes to develop a completed license.If drivers arrive at the machine at the mean rate of 11 perhour (Poisson distributed), determine the average length ofthe waiting line and the average waiting time.Many banks and post offices have switched from having a line at each teller or clerk to a single waiting line cordoned off by a set of ropes or chains. Examine this change by considering the following two cases: A. Case 1. Customers arrive at a bank at an average rate of 80 per hour and form a single line. There are five tellers, and the average service time is 3.0 minutes for each teller. Assuming exponential interarrival and service times, how long is the average wait in line? B. Case 2. Customers arrive at a teller's window at a rate of 16 per hour. There are five tellers so that the total arrival rate is 80 per hour. There is separate line at each window (with no switching between lines). As in Case 1, the average service time for each teller is 3.0 minutes. How long is the average wait in line? C. Comment on the results of Cases 1 and 2. What additional factors might affect waiting times in a real banking situation?