Bloomington Hospital knows that insurance compa-nies are going to reduce the average length of stay of many types of patients. How can queueing models beused to determine how changes in insurance policieswill influence the hospital?

Bloomington Hospital knows that insurance compa-nies are going to reduce the average length of stay of many types of patients. How can queueing models beused to determine how changes in insurance policieswill influence the hospital?

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 14P

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Inventory Management

The supply chain is crucial to a firm's operations as it manages the inflow and outflow of products that are manufactured from the initial stage to the end product. It also considers the raw materials needed at different stages of production and when the work is in progress. Inventory management functions consist of ordering, storing, and procuring the organization's inventory like raw materials, factors, and finished products. It's also used for controlling the number of products for trade and helps manage the organization's inventory and stock. Inventory Management has been defined as having the right inventory, of the right volume, at the right cost.

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Bloomington Hospital knows that insurance compa-
nies are going to reduce the average length of stay of

many types of patients. How can queueing models be
used to determine how changes in insurance policies
will influence the hospital?

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. Bloomington Hospital knows that insurance companies are going to reduce the average length of stay ofmany types of patients. How can queueing models beused to determine how changes in insurance policieswill influence the hospital?
A manufacturing cell has 4 operators (working independently in parallel) and a shared buffer space that can fit at most 6 incoming jobs. During a production period, jobs arrive to the cell with rate of 10 jobs per hour (Poisson arrival, i.e., exponential inter-arrival time). The average processing time of a job is 30 minutes (exponentially distributed service time). Answer the following questions using the analytical formulas learned in class. (a) Which queueing model should be used to model this problem? (b) What is the long-term average waiting time of a job in the buffer? (c) What is the probability that an arriving job cannot be admitted into the cell due to full occupancy? (d) If the desired the rejection probability is no more than 10% in this case, what would you suggest? Use calculations to justify your answer.
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The manager of a bank wants to use an MyMys queueingmodel to weigh the costs of extra tellers against the costof having customers wait in line. The arrival rate is 60customers per hour, and the average service time is fourminutes. The cost of each teller is easy to gauge at the$11.50 per hour wage rate. However, because estimatingthe cost per minute of waiting time is difficult, the bankmanager decides to hire the minimum number of tellersso that a typical customer has probability 0.05 of waitingmore than five minutes in line.a. How many tellers will the manager use, given thiscriterion?b. By deciding on this many tellers as “optimal,” themanager is implicitly using some value (or some range of values) for the cost per minute of wait-ing time. That is, a certain cost (or cost range) would lead to the same number of tellers as sug-gested in part a. What is this implied cost (or cost range)?