Operations Management Name:______________________

Skill Builder 3

Problem 1: Tri-Cities Bank is planning to open drive-in teller service. Customers arrive randomly at the drive-in window, whose average inter-arrival time is 2 minutes. Assume the service provided at the drive-in window follows an e ponential distri!ution. "#int: use the e cel template posted on $e!CT for calculation% Compute the following operating characteristics for each alternative of the four service alternatives are !eing considered !elow: "a% Average num!er of cars waiting for service. "!% Average time a car waits for service. "c% Average time in the system. "d% Average num!er of cars in the system. "&% A single-channel operation where one employee serves customers. The average service time for this alternative is &.' minutes. "&( points%

"2% A single-channel operation where two employees work as a team to serve each customer. The average service time for this alternative "team% is (.)' minutes. "&( points%

"*% A two-channel operation with two service windows and two employees. +ewly arriving customers ,oin one -ueue which feeds !oth service windows. .ne employee is stationed at each window serving customers arriving at the window. The average service time for each service window is &.' minutes. "&( points%

"/% There are two service windows and two employees. There is a separate -ueue for each of the service windows. +ewly arriving customers randomly choose one of two

-ueues. .ne employee is stationed at each window serving customers arriving at that window. The average service time for each service window is &.' minutes. "&( points%

"'% The manager finds out that most customers prefer to get in and out as -uickly as possi!le. Between service alternative "2% and "*%, which option should the manager choose0 "2( points%

Problem 2: The management of the American 1arcel 2ervice terminal in 3erona, $isconsin, is concerned a!out the amount of time the company4s trucks are idle, waiting to !e unloaded. The terminal operates with four unloading !ays currently. 5ach !ay re-uires a crew of two employees and each crew costs 6*( per hour "i.e., 6&'7hour per employee%. The estimated cost of an idle truck is 6'( per hour. Trucks arrive at an average rate of three per hour and the inter-arrival time is e ponential. .n average, a crew can unload one truck in one hour, with e ponential service times. "#int: follow the trader e ample in the slides and use the e cel template% &. $hat is the total hourly cost of operating this system0 "2( points%

2. To minimi8e the a!ove total hourly operating cost, how many uploading !ays should !e in operation0 "2( points%