V5. Catamount Inc. employs one worker to load packages on an outgoing truck. The work shift is an 8 hour day. Trucks arrive at theloading dock at an average of 40 per day. The worker can load a truck in 8 minutes. Truck drivers earn $20 per hour while theemployees who load the trucks earn $18/hour. While the trucks are being loaded, the truck drivers must sit and wait with thetruck.a) Should the cost be based on truck drivers in the system or truck drivers in the queue? Explain.b) What is the hourly cost for this system?c) Catamount has the enough capital to make one improvement to the system. They can decrease the loading rate from 8 minutesper truck to 6 minutes per truck; OR they can add a second dock with an additional worker (each worker still loads at a rate 8minutes per truck). If they add an additional dock, trucks will still line up in a single line and go to the first available dock. Perform acost analysis (ignore capital improvement costs) for both options and explain which option Catamount should take. Provide allrelevant cost calculations and explain your answer.

Find the Given details below: Given details: Shift 8 Hours per day Trucks 40 per day…

Answered: Catamount Inc. employs one worker to…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter12: Queueing Models

Section12.5: Analytic Steady-state Queueing Models

Problem 9P

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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?
Pasquist Water Company (PWC) operates a 24-hour facil-ity designed to efficiently fill water-hauling tanker trucks.Trucks arrive randomly to the facility and wait in line to ac-cess a wellhead pump. Since trucks vary in size and the filling operation is manually performed by the truck driver, the timeto fill a truck is also random.a. If the manager of PWC uses the multiple-server modelto calculate the operating characteristics of the facility’swaiting line, list three assumptions she must make regard-ing the behavior of waiting trucks and the truck arrivalprocess.b. Suppose an average of 336 trucks arrive each day, thereare four wellhead pumps, and each pump can serve anaverage of four trucks per hour.▪ What is the probability that exactly 10 trucks will arrivebetween 1:00 p.m. and 2:00 p.m. on any given day?▪ How likely is it that once a truck is in position at a well-head, the filling time will be less than 15 minutes?c. Contrast and comment on the performance differencesbetween:▪…
Do: 12-21 Truck drivers working for Juhn and Sons (see Problems 12-19 and 12-20) are paid a salary of $20 per hour on average. Fruit loaders receive about $12 per hour. Truck drivers waiting in the queue or at the loading gate are drawing a salary but are productively idle and unable to generate revenue during that time. What would be the hourly cost savings to the firm associated with employing two loaders instead of one? Not this: 12-19 Juhn and Sons Wholesale Fruit Distributors employs one worker whose job is to load fruit on outgoing company trucks. Trucks arrive at the loading gate at an average of 24 per day, or 3 per hour, according to a Poisson distribution. The worker loads them at a rate of 4 per hour, following approximately the exponential distribution in service times. Not this: 2-20 Juhn believes that adding a second fruit loader will substantially improve the firm’s efficiency. He estimates that a two-person crew, still acting like a single-server system, at the loading…
Drivers who come to get their licenses at the Department of Motor Vehicles have their photograph taken by an automated machine that develops the photograph onto the license card and laminates the complete license. The machine requires a constant time of 4 minutes to prepare a complete license. The interarrival time between two drivers is 6 minutes distributed exponential. a) What type of queuing model this system follow ? b) Determine the average length of the waiting line. c) Determine the average waiting time.
A Company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used 7 workers, who produced an average of 87 carts per hour. Workers receive $15 per hour, and machine coast was $43 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $14 per hour while output increased by four carts per hour. a) Compute the multifactor productivity (MFP) (labor plus equipment) under the Prior to buying the new equipment. The MFP (carts/S) = Blank 1 (round to 4 decimal places). b) Compute the productivity changes between the Prior to and after buying the new equipment. The productivity growth = Blank 2% (round to 2 decimal places) Blank 1 Add your answer Blank 2 Add your answer
What does the term "queue discipline" mean?

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