Chapter 13, Problem 19QP

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?

Trucks arrive at a warehouse at a rate of 15 per hour during business hours. Crews canunload the trucks at a rate of five per hour. The high unloading rate is due to cargo beingcontainerized. Recent changes in wage rates have caused the warehouse manager to reexamine the question of how many crews to use. The new rates are: Crew and dock cost is$100 per hour; truck and driver cost is $120 per hour.

Breann can handle about thirteen customers per hour at her one-person comic book store. The customer arrival rate averages about seven customers per hour. Breann is interested in knowing the operating characteristics of her single-channel, single-phase queuing system. Do not round intermediate calculations. Round your answers to three decimal places.

given the following: A typical TSA agent at Piedmont Triad International Airport takes approximately 1.15 minutes to screeneach passenger that arrives at the security gate. During the day, a passenger arrives at the gate onaverage every 1.3 minutes. Both the service rate and arrival rate follow a Poisson distribution. Based onthis information and the assumption that only one screening line is open at the security gate, answer thefollowing questions with the given information: a) average number of passengers waiting in line to be screened is 7 b) average amount of time (in minutes) passengers spend waiting in line is .147 minutes c) average amount of time (in minutes) passengers spend in the screening system?.166 minutes 1. What is percent of the time does the typical TSA agent spend actively screening passengers? 2. Throughout the day, passenger arrival rates vary with the greatest number of passengers arriving about 45 minutes before a flight is expected to depart. If during this…

Analyze the following queueing management sysytem 1- traffic intensity of 0.3 in queueing system 2- The average time spends in the system =0.036 3-The average number of the customer in the system 0.43

The Bijou Theater shows vintage movies. Customers arrive at the theater line at the rate of 100 per hour. The ticket seller averages 30 seconds per customer, which includes placing validation stamps on customers’ parking lot receipts and punching their frequent watcher cards. (Because of these added services, many customers don’t get in until after the feature has started.) (Use the Excel spreadsheet Queue Models.) What is the average customer time in the system? What would be the effect on customer time in the system of having a second ticket taker doing nothing but validations and card punching, thereby cutting the average service time to 20 seconds? Note: Round your answer to 3 decimal places. What would be the customer time in the system if instead of the change in part (b), a second window was opened with each server doing all three tasks? Note: Do not round intermediate calculations. Round your answer to 3 decimal places. Would system waiting time which is obtained…

The new accounts loan officer of the Millennium Commercial Bank interviews all customers for new accounts. The customers desiring to open new accounts arrive at the rate of 4 per hour, according to a Poisson distribution, and the accounts officer spends an average of 12 minutes with each customer, setting up a new account. Determine the operating characteristics (P0, L, Lq, W, Wq and Pw) for this system.

Janson's Department Store in Stark, Ohio, maintains a successful catalog sales department in which a clerk takes orders by telephone. If the clerk is occupied on one line, incoming phone calls to the catalog department are answered automatically by a recording machine and asked to wait. As soon as the clerk is free, the party who has waited the longest is transferred and serviced first. Calls come in at a rate of about 10 per hour. The clerk can take an order in an average of 4.0 minutes. Calls tend to follow a Poisson distribution, and service times tend to be negative exponential. The cost of the clerk is $8 per hour, but because of lost goodwill and sales, Janson's loses about $25 per hour of customer time spent waiting for the clerk to take an order. a) The average time that catalog customers must wait before their calls are transferred to the order clerk = minutes (round your response to two decimal places). b) The average number of callers waiting to place an…

Describe at least 4 operating characteristics you can determine by performing queue analysis. What is the purpose of doing queue analysis to the business owner, i.e., what are possible actions (at least 2) that a business owner or manager might want to take, once the operating characteristics are understood?

Janson's Department Store in Stark, Ohio, maintains a successful catalog sales department in which a clerk takes orders by telephone. If the clerk is occupied on one line, incoming phone calls to the catalog department are answered automatically by a recording machine and asked to wait. As soon as the clerk is free, the party who has waited the longest is transferred and serviced first. Calls come in at a rate of about 10 per hour. The clerk can take an order in an average of 3.0 minutes. Calls tend to follow a Poisson distribution, and service times tend to be negative exponential. The cost of the clerk is $12 per hour, but because of lost goodwill and sales, Janson's loses about $25 per hour of customer time spent waiting for the clerk to take an order. a) The average time that catalog customers must wait before their calls are transferred to the order clerk = minutes (round your response to two decimal places). b) The average number of callers waiting to place an…

A chemical plant stores spare parts for maintenance in a large warehouse. Throughout the working day, maintenance personnel go to the warehouse to pick up supplies needed for their jobs. The warehouse receives a request for supplies, on average, every 2 minutes (Poisson distributed). The average request requires 1.7 minutes to fill (exponential service times). Maintenance employees are paid $20 per hour, and warehouse employees are paid $12 per hour. The warehouse is open 8 hours each day. What is the optimal number of warehouse employees to hire? (Hint: Time spent by maintenance workers waiting in line for supplies should be considered an expense.) What is the total cost per hour (waiting plus warehouse employee labor cost) of your solution?

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Chapter 13, Problem 19QP

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