Operations Management
17th Edition
ISBN: 9781259142208
Author: CACHON, Gérard, Terwiesch, Christian
Publisher: Mcgraw-hill Education,
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Chapter 17, Problem 4CQ
Summary Introduction
To determine: Relationship between implied utilization and utilization in best described in which of the following?
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If the arrival rate doubles and the number of servers doubles, what is the changein the system’s utilization, assuming there are no other changes (e.g., the processing timeand the coefficients of variation remain the same)?A. Utilization increases.B. Utilization remains the same.C. Utilization decreases.D. It is not possible to determine how those changes will influence utilization.
Background Info A "Visit" is an instance of a person coming to a website A "visitor" is a person who conducts a visit on a website An "Order" is an instance of someone making a purchase "Conversion rate" is defined as the number or orders per visit The home page of a web site can be "split" into two versions ("A" and "B") that have different characteristics (e.g. layout, products, etc.) These different versions can then be shown to different visitors on a random basis For example, 75% of visitors would see version A and 25% of visitors would see version B Scenario You are determining which home page version is the best choice for the site to maximize the number of orders. A two week split test was set up where visitors were randomly (but not necessarily equally) assigned to one home page or another, and the number of visitors to each homepage and the related orders were accurately recorded by day. The additional traffic on the 7th and 14th is due to some banner ads running on MSN on…
Which of the following statements is TRUE?
Group of answer choices
The bottleneck resource is the one that determines the capacity of a process, and thus its utilization is always 100%.
Because there is excess capacity compared to the bottleneck resource, non-bottleneck resource is always under-utilized, and its utilization is less than 100%.
The bottleneck resource constrains the flow of the process, and thus the flow rate is always the same as the bottleneck capacity.
When process is capacity constrained, utilization tells us by how much demand exceeds capacity.
It is always necessary to add more capacity to the bottleneck stage to increase the Flow rate of the process.
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- An engineering i rm retains a technical specialist to assist four design engineers workingon a project. The help that the specialist gives engineers ranges widely in time consumption.The specialist has some answers available in memory, others require computation,and still others require signii cant search time. On the average, each request for assistancetakes the specialist one hour.The engineers require help from the specialist on the average of once each day. Becauseeach assistance takes about an hour, each engineer can work for seven hours, on the average,without assistance. One further point: Engineers needing help do not interrupt if thespecialist is already involved with another problem.Treat this as a i nite queuing problem and answer the following questions:a. How many engineers, on average, are waiting for the technical specialist for help?b. What is the average time that an engineer has to wait for the specialist?c. What is the probability that an engineer will have to wait…arrow_forwardThe implied utilization can never be bigger than 100 percent. True or false?a. Trueb. Falsearrow_forwardWhich of the following makes it relatively easier to imitate resources? A. Path dependence B. Resource compression diseconomies C. Visible assets D. interconnected asset stocksarrow_forward
- A research analyst performs database searches for a variety of clients. According to her log, a newsearch requires approximately 55 minutes. Repeated requests on the same or similar topic take lessand less time, as her log shows.Request no. 1 2 3 4 5 6 7 8Time (min.) 55.0 41.0 35.2 31.0 28.7 26.1 24.8 23.5How many more searches will it take until the search time gets down to 19 minutes?arrow_forwardMatt and Sara are regulars at Culver's. They have strong positive belief about the restaurant, and tend to get offended if someone complains about the service. Culver's, according to them, indisputably offers the quickest service in town. This is an example of:arrow_forwardWhich of the following captures the idea of Andon?(a) Examples of this include workers having to make unnecessary movements (i.e.,excessive reaching or walking to get tools or parts), working on parts that are defective,and idle time.(b) A system that enables a line worker to signal that he or she needs assistance from hisor her supervisor, for example, in the case of a defect. It is used to implement the jidokaprinciple.(c) A brainstorming technique that helps structure the process of identifying underlyingcauses of a (usually undesirable) outcome.(d) As an example of this philosophy, workers in the factory have notebooks at theirworkstations that they use to jot down improvement ideas.(e) A method that controls the amount of work-in-process inventory.(f) If an automotive assembly plant used this technique, the adjacent cars on an assemblyline would be mixed models (e.g., Model A with sunroof, Model A without sunroof,Model B, Model B with sunroof) in proportions equal to customer…arrow_forward
- Which of the following is NOT a type of cost of providing service? A. Adding an additional server B. Having standby personnel if the line gets long C. A customer leaving a line because it is too long D. Having an old machine available to accommodate backlogged ordersarrow_forwardA manufacturing facility stores spare parts for maintenance in a storage facility. Throughout theworking day, manufacturing personnel go to the storage facility to pick up supplies needed for theirjobs. The storage facility employees receive a request for supplies, on average, every five minutes fromthe manufacturing personnel. The average request requires 3.2 minutes to fill a request. Manufacturingpersonnel are paid $29.50 per hour and storage facility employees are paid $18.75 per hour. The storagefacility operates 8 hours per day. Base your costs on an 8-hour workday, the given arrival and servicerates, and the fact that when the manufacturing personnel are at the storage site picking up parts – theyare unable to complete their normal job in manufacturing.a) What is the system cost per day (to the nearest $) if there is only 1 storage facility employeeworking?b) What is the system cost per day (to the nearest $) if there are 2 storage facility employeesworking?c) What is the system…arrow_forwardWithin a workplace, a worker describes how his co-workers leave business documentson the reception desk and personal belongings within the conference room when theirmanager is absent. How would this affect the functioning of a company?a. The company would not be able to complete its tasks efficiently. b. The company would not be able to complete its tasks effectively.c. Both a and b are correctd. Both a and b are incorrectarrow_forward
- ______ refers to the process by which goods and services are delivered to the customer. In class, we discussed how this is aided by a pay structure as one level (i.e., a customer associate at a lower level) can direct clients to another appropriate level (i.e., a financial advisor) in order to efficiently offer a service to the customer. A. Value B. Work flow C. Exchange value D. Job-based structurearrow_forwardTrue or False? The average number of customers in queue plus the number of servers equals the average number of customers in the system. The main cause of delay at Logan Airport was overbooking, and building a new runway solved the delay problem. If a company hopes to increase the capacity of a process, the company needs to try to shorten the process’s cycle time. Little’s Law only applies to an M/M/1 queue, which is a special case of a G/G/C queue. If a queuing system has deterministic arrival rate λ and service rate μ, and λ < μ, then Lq = 0 in this queue.arrow_forwardA large corporation maintains a fleet of three 30-passenger corporate jets that provide daily scheduled service between Detroit & several cities that are home to its production facilities. The jets are used strictly for business travel. The executives bood reservations thru a centralized transportation office. Because of the limited number of seats available, the planes almost always fly full. Excess demand for seats is assigned by executive rank within the firm. The executive's budget is charged for the flight at the end of the month. The charge is based on the jet's total operating expenses during the month (to include fuel, pilot's salary & fringes, maintenance, licensing & landing fees, and 1/2 of the annual accounting depreciation) divided by the actual passenger miles logged in the month. This rate per passenger is multiplied by each passenger's mileage flown in the month.A. Describe the formula being used to calculate the cost per passenger mile flown.B. As passenger…arrow_forward
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