Concept explainers
a)
To determine: The decisions that must be made by Company W.
Introduction: In order to predict the waiting time and length of the queue, queueing model will be framed. Queueing theory is the mathematical model that can be used for the decision-making process regarding the resources required to provide a service.
b)
To determine: The appropriate objective for Company M to minimize or maximize and the difficulties in achieving the objective.
Introduction: In order to predict the waiting time and length of the queue, queueing model will be framed. Queueing theory is the mathematical model that can be used for the decision-making process regarding the resources required to provide a service.
c)
To determine: The data that need to be used to track the efficiency.
Introduction: In order to predict the waiting time and length of the queue, queueing model will be framed. Queueing theory is the mathematical model that can be used for the decision-making process regarding the resources required to provide a service.
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Practical Management Science, Loose-leaf Version
- 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?arrow_forwardFor a single-server queue of 10 customers whose arrival and service time is given below in the table. Complete the below given table. Customer Arrival Time ti Inter Arrival Time Ai=ti—ti-1 Service Begins (Sb) Delay Time (Di) Service Time (Si) Calculate Ci=ti+Di+Si 1 7:00 7:02 6 2 7:08 7:12 4 3 7:11 7:16 1 4 7:13 7:19 5 5 7:18 7:25 10 6 7:36 7:39 2 7 7:40 7:44 3 8 7:45 7:48 3 9 7:49 7:52 4 10 7:55 7:57 3 Find the average service time and average delay time. Average Service Time= Average Delay Time=arrow_forwardPlease fill out the data tables using the given informationarrow_forward
- Saved Help Save & Exit Submit octoring Enabled: Chapter 11 Queuing Models Exercises On a toll road, there are 5 lanes for drivers to pay their toll. Customer arrival times are random, with a general independent distribution. Service times are constant, with a degenerate distribution. What is the proper description for this queueing system? Proper description < Prev 3 of 5 Next Mc Graw Hill 3.arrow_forwardDescribe 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?arrow_forwardLong lines of patients wait for CAT scanning service in a hospital. Patients arrive for scans at a rate of 1.7 per hour. The average processing time for CAT service is 26 minutes per patient. Your summer internship is in the hospital where you are assigned to help analyze the bottleneck situation. One tool that you think can help evaluate the situation is a single server queueing model. Use the Single Server Queue Excel template to answer the following questions. Do not round intermediate calculations. Round your answers to three decimal places. What is the probability that the system is empty? What is the probability that a customer must wait for service? What is the average number of customers waiting for service in the queue? customer(s) What is the average wait time in the queue? hour(s) What is the average time spent in the system? hour(s)arrow_forward
- please dont answer in image format. Do type Thnksarrow_forwardOcala Software Systems operates a technical support center for its software customers. If customers have installation or use problems with Ocala software products, they may telephone the technical support center and obtain free consultation. Currently, Ocala operates its support center with one consultant. If the consultant is busy when a new customer call arrives, the customer hears a recorded message stating that all consultants are currently busy with other customers. The customer is then asked to hold and is told that a consultant will provide assistance as soon as possible. The customer calls follow a Poisson probability distribution, with an arrival rate of five calls per hour. On average, it takes 7.5 minutes for a consultant to answer a customer's questions. The service time follows an exponential probability distribution. To improve customer service, Ocala Software Systems wants to investigate the effect of using a second consultant at its technical support center. What effect…arrow_forwardOcala Software Systems operates a technical support center for its software customers. If customers have installation or use problems with Ocala software products, they may telephone the technical support center and obtain free consultation. Currently, Ocala operates its support center with one consultant. If the consultant is busy when a new customer call arrives, the customer hears a recorded message stating that all consultants are currently busy with other customers. The customer is then asked to hold and is told that a consultant will provide assistance as soon as possible. The customer calls follow a Poisson probability distribution, with an arrival rate of six calls per hour. On average, it takes 7.1 minutes for a consultant to answer a customer's questions. The service time follows an exponential probability distribution. To improve customer service, Ocala Software Systems wants to investigate the effect of using a second consultant at its technical support center. (Round your…arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,MarketingMarketingISBN:9780357033791Author:Pride, William MPublisher:South Western Educational Publishing