Gilman Heating and Air Conditioning Gilman Heating and Air Conditioning Inc. provides a broad range of services to commercial and residential customers, including installation and repair of several different brands of heating and air-conditioning systems, Gilman has a fleet of 28 trucks, each operated by one or more service technicians, depending on the size of a job. A recurrent problem for Gilman has been coordinating the service teams during the day to determine the status of a job and the need for parts not kept in the service vehicle, as well as to identify which team to send on emergency calls. Gilman's service area is spread over an urban/rural area of approximately 50 square miles. The company has developed cost and price sheets so that the service technicians accurately and consistently price the service work they perform.
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Gilman Heating and Air Conditioning Gilman Heating and Air Conditioning Inc. provides a broad range of services to commercial and residential customers, including installation and repair of several different brands of heating and air-conditioning systems, Gilman has a fleet of 28 trucks, each operated by one or more service technicians, depending on the size of a job. A recurrent problem for Gilman has been coordinating the service teams during the day to determine the status of a job and the need for parts not kept in the service vehicle, as well as to identify which team to send on emergency calls. Gilman's service area is spread over an urban/rural area of approximately 50 square miles. The company has developed cost and price sheets so that the service technicians accurately and consistently price the service work they perform.
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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 the beginning of each week, a machine is in one of four conditions: 1 = excellent; 2 = good; 3 = average; 4 = bad. The weekly revenue earned by a machine in state 1, 2, 3, or 4 is 100, 90, 50, or 10, respectively. After observing the condition of the machine at the beginning of the week, the company has the option, for a cost of 200, of instantaneously replacing the machine with an excellent machine. The quality of the machine deteriorates over time, as shown in the file P10 41.xlsx. Four maintenance policies are under consideration: Policy 1: Never replace a machine. Policy 2: Immediately replace a bad machine. Policy 3: Immediately replace a bad or average machine. Policy 4: Immediately replace a bad, average, or good machine. Simulate each of these policies for 50 weeks (using at least 250 iterations each) to determine the policy that maximizes expected weekly profit. Assume that the machine at the beginning of week 1 is excellent.Management of High Tech Services (HTS) would like to develop a model that will help allocate their technician’s time between service calls to regular contract customers and new customers. A maximum of 80 hours of technician time is available over the two-week planning period. To satisfy cash flow requirements, at least $800 in revenue (per technician) must be generated during the two-week period. Technician time for regular customers generates $25 per hour. However, technician time for newcustomers only generates an average of $8 per hour. To ensure that new customer contracts are being maintained, the technician time spent on new customer contracts must be at least 60% of the time spent on regular customer contracts. Given these revenue and policy requirements, HTS would like to determine how to allocate technician time between regular customers and new customers so that the total number of customers contracted during the two-week period will be maximized. Technicians require an…
- The Schmedley Discount Department Store has approximately 300 customers shopping in its store between 9 A.M. and 5 P.M. on Saturdays. In deciding how many cash registers to keep open each Saturday, Schmedley’s manager considers two factors: customer waiting time (and the associated waiting cost) and the service costs of employing additional checkout clerks. Checkout clerks are paid an average of $67 per hour. When only one is on duty, the waiting time per customer is about 10 minutes (or hour); when two clerks are on duty, the average checkout time is 6 minutes per person; 4 minutes when three clerks are working; and 3 minutes when four clerks are on duty. Schmedley’s management has conducted customer satisfaction surveys and has been able to estimate that the store suffers approximately $10 in lost sales and goodwill for every hour of customer time spent waiting in checkout lines. Using the information provided, determine the optimal number of clerks to have on duty each Saturday to…The College of Business and Public Administration at Benton University has a copy machine on each floor for faculty use. Heavy use of the five copy machines causes frequent failures. Maintenance records show that a machine fails every 2.5 days (or π = 0.40 failure/day). The college has a maintenance contract with the authorized dealer of the copy machines. Because the copy machines fail so frequently, the dealer has assigned one person to the college to repair them. The person can repair an average of 2.5 machines per day. Using the finite-source model, answer the following questions:a. What is the average utilization of the maintenance person?b. On average, how many copy machines are being repaired or waiting to be repaired?c. What is the average time spent by a copy machine in the repair system (waiting and being repaired)?The College of Business and Public Administration at Benton University has a copy machine on each floor for faculty use. Heavy use of the five copy machines causes frequent failures. Maintenance records show that a machine fails every 2.5 days (or l = 0.40 failure/day). The college has a maintenance contract with the authorized dealer of the copy machines. Because the copy machines fail so frequently, the dealer has assigned one person to the college to repair them. The person can repair an average of 2.5 machines per day. Using the finite-source model, answer the followingquestions: a. What is the average utilization of the maintenance person?b. On average, how many copy machines are being repaired or waiting to be repaired?c. What is the average time spent by a copy machine in the repair system (waiting and being repaired)?
- Based on Jacobs (1954). The Carter Caterer Company must have the following number of clean napkins available at the beginning of each of the next four days: day 1, 1500; day 2, 1200; day 3, 1800; day 4, 600. After being used, a napkin can be cleaned by one of two methods: fast service or slow service. Fast service costs 50 cents per napkin, and a napkin cleaned via fast service is available for use the day after it is last used. Slow service costs 30 cents per napkin, and these napkins can be reused two days after they are last used. New napkins can be purchased for a cost of 95 cents per napkin. Determine how to minimize the cost of meeting the demand for napkins during the next four days. (Note: There are at least two possible modeling approaches, one network and one nonnetwork. See if you can model it each way.)FeVer Beverages is a typical coffee shop that operates at Batangas. Recently, the general manager is facing a challenge about not meeting their target lead time of serving the hot coffee of 15 minutes. The lead time starts from order taking until order serving. The staffing model of the shop has one cashier, one barista and a guard. The number of staff, equipment, and raw materials have been found sufficient. Based on the initial data analysis, the volume of customers has been stable. Because there is a need for the lead time to improve as to retain its customers and to even grow, a problem-solving effort has been started using the Lean Six Sigma DMAIC approach. Using the FEVER Beverages, you should create your own Project Charter and SIPOC Diagram.The new-accounts officer at the Bank enrolls all new customers in checking accounts. During the three-week period in August encompassing the beginning of the new school year at UTT, the bank opens many new accounts for students. The bank estimates that the arrival rate during this period will be Poisson distributed with an average of five (5) customers per hour. The service time is exponentially distributed with an average of 15 minutes per customer to set up a new account. The bank wants to determine the operating characteristics for this system to determine if the current person is sufficient to handle the increased traffic. What is the probability of no customers in the system? What is the average number of customers waiting in the bank? What is the average time the customer spends in the bank? What is the average number of customers waiting in the line? What is the average time that a customer spends in the line? Is the number of tellers sufficient to handle the increase…
- Kathleen McFadden's restaurant in Boston has recorded the following data for eight recent customers: a) McFadden wants you to graph the eight points (x;, y1), i = I, J 2, ... 8. She has been concerned because customers have been waiting too long for their food, and this graph is intended to help her find possible causes of the problem.b) This is an example of what type of graph?Author: Leo A. Ruggle, Professor, Department of Accounting, Mankato State University Arnie Armstrong has been with Pierce Auto Parts Manufacturing Company for 23 years. Recently, he was appointed Director of Manufacturing Computer Services. In just six weeks in this new position, [he] has moved to reduce the amount of information provided to manufacturing department managers by 60 percent. He argues that excess data is distracting, unused, and expensive to provide. Willy McClean has been department manager for 12 years. During a coffee break with some of his department production supervisors, Willy is quite vocal about the change. “Who’s this guy Armstrong to tell us what data we need? He needs to be out here for a few weeks to find out what it’s like. Keep it quiet, but I’ve got a contact in Computer Services who’ll get me all the data analyses I want for just a $20 bill each month. It’s a good deal, and Armstrong will never know. How does he expect us to make good decisions about…Biggio’s Department Store has six employees available to assign to four departments in the store—home furnishings, china, appliances, and jewelry. Most of the six employees have worked in each of the four departments on several occasions in the past and have demonstrated that they perform better in some departments than in others. The average daily sales for each of the six employees in each of the four departments are shown in the following table: Employee 3 has not worked in the china department before, so the manager does not want to assign this employee to china. Determine which employee to assign to each department and indicate the total expected daily sales.