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Practice #2

Littles Law
TOM301 Operations Management
1. The Avis Company is a car rental company and is located 3 miles from the
Los Angeles airport (LAX). Avis is dispatching a bus from its offices to the
airport every min. The average traveling time (a round trip) is ! min.
a. "o# many Avis buses are traveling to and from the airport$
The throughput rate is 3! buses per hour.
The throughput time is !%&! '1%3 hours
TT ' ()*%T+
TT,T+ ' ()*
3!,1%3 ' 1!
1! buses are traveling to and from the airport.
b. The branch manager #ants to improve the service and suggests
dispatching buses every !.- min. .he argues that this #ill reduce the
average traveling time from the airport to Avis offices to .- min. )s she
correct$ )f your ans#er is negative then #hat #ill the average traveling
time be$
This reduces the average #aiting time/ but has no effect on the average
traveling time. The average traveling time does not change and #ill remain !
. .afety regulations re0uire that the time bet#een airplane ta1eoffs (on the same
run#ay) #ill be at least 3 min. (hen ta1ing off/ the run time of an airplane
on the run#ay is 2- sec. *lanes are on average #aiting 2 min and 1- sec for
ta1e3off. 4n average there are 1- plans ta1ing off per hour.
a. "o# many planes are either on the run#ay or #aiting to ta1e off$
T+ ' 1- plans per hour.
TT ' (!.5- 62.-)%&! ' 1%1 of an hour
()* ' TT,T+ ' 1-,1%1 ' 1.-
3. )n Children7s "ospital in .eattle there are on average &! births per #ee1.
8other and child stay/ on average/ t#o days before they leave the hospital. )n
.#edish hospital (also in .eattle)/ the average number of births per #ee1 is
1!. 8others and children stay in the hospital days on average.
a. "o# many ne# mothers are staying in Children7s "ospital$
T+ ' &! per #ee1
TT ' %5 #ee1s
()* ' TT ,T+ ' &!,%5 ' 1!%5 ' 15.1
4n average there are 15.1 ne# mothers in the Children7s hospital.

b. "o# many ne# mothers are staying in the .#edish "ospital$
T+ ' 1!per #ee1
TT ' %5 #ee1s
()* ' TT ,T+ ' 1!,%5 ' &!
4n average there are &! ne# mothers in .#edish.
c. The directors of the t#o hospitals are negotiating unifying the children
#ards of the t#o hospitals. They believe that by doing so they #ill be able
to reduce the number of ne# mothers staying in the hospital.
Are they correct$ "o# many ne# mothers #ill stay/ on average/ in the
unified #ard$
9ou may assume that the average number of births and the length of stay
of the ne# mothers #ill not change.
T+ ' 5!per #ee1
TT ' %5 #ee1s
()* ' TT ,T+ ' 5!,%5 ' -2!%5 ' 55.1
4n average there #ill be 55.1 ne# mothers in the unified hospital. :o/ it #ill
not decrease the total number of mothers in the hospital.
2. )n the last university senate meeting the faculty representative complained
about shortage of space in the faculty club. The representative claimed that a
large fraction of the faculty has to #ait a long time/ sometimes more than 3!
min/ till a table is available.
At present the faculty club can seat 1!! customers. A study conducted lately
found that during lunch time the arrival rate is 1-! customers per hour. Also/
the study found that/ on average/ a person spends in the club/ after he%she is
seated/ 5- min.
a. )f the management of the club #ants to satisfy the faculty #hat should the
capacity of the club be$
T+ ' 1-! customers per hour.
TT ' 1.- hours
()* ' T+,TT ' 1-!,1.- ' 1;5.- customers or 1;; seats.
b. Club management is short of resources and is unable to add ne# capacity.
The club management suggests introducing a self service system. They
believe that the ne# service #ill result in the faculty staying in the club
for only 2! min. (ill the self service system solve the problem$
()* ' T+,TT ' 1-!,%3 ' 1!! customers or 1!! seats. This solves the
-. A call center employs 1!!! agents. <very month -! employees leave the
company and -! ne# employees are hired.
a. "o# long on average does an agent #or1 for this call center$
Throughput +ate ' -! people%month
()* ' 1!!! people
Average #or1ing time ' Throughput Time
' ()*%T+ ' 1!!!%-! ' ! months
.uppose the cost of hiring and training a ne# agent is =1!!!. The manager of this
call center believes that increasing agents7 salary #ould 1eep them #or1ing
longer term in the company. The manager #ants to increase the average time that
an agent #or1s for the call center to 2 months/ or years.
b. )f an agent #or1s for the call center for 2 months on average/ ho# much
can the company save on hiring and training costs over a year$ "int> first
determine the current annual cost for hiring and training/ then determine
the ne# annual cost for hiring and training.
Current annual cost for hiring and training>
Throughput +ate ' -! people%month ' &!! people%year
Annual hiring and training cost is &!!,1!!!'=&!!/!!!
:e# annual cost for hiring and training>
Average #or1ing time ' Throughput Time ' 2 months ' years
Throughput +ate ' ()*%TT ' 1!!! people% years ' -!! people% year
Annual hiring and training cost is -!!,1!!!'=-!!/!!!
Annual saving on hiring and training cost is =1!!/!!!
&. 8oney Laundry has 1! #ashers and 1- dryers. All orders are first sent to
#ash and then to dry. )t ta1es on average 3! minutes to #ash one order and
2! minutes to dry.
a. (hat is the capacity of the #ashing stage$
1! , &!%3! ' ! orders % hour

b. (hat is the capacity of the drying stage$
1- , &!%2! ' .- orders% hour

c. )dentify the bottlenec1(s). ?riefly e@plain.
d. (hat is the capacity of 8oney laundry$ ?riefly e@plain.
! orders%hour
e. )f 8oney laundry #ould li1e to increase the capacity by buying one
more machine/ should they buy a #asher or a dryer$ (hy$
(asher as that is the bottlenec1.

The manager/ 8r. 8oney/ decided not to buy a machine. "e still has 1! #ashers
and 1- dryers. The manager estimates that on average 8oney Laundry receives ;
orders every hour. The manager also finds that on average there are - orders in
the #ashing stage and 5 orders in the drying stage.

a. (hat is the utiliAation of #ashers/ on average$
; orders%hour % ! orders%hour ' 2!B
b. (hat is the utiliAation of dryers/ on average$
; orders%hour % .- orders%hour ' 3-.-&B
c. 4n average/ ho# long does it ta1e an order to finish #ashing process/
from the time the order is received$
()* ' -/ T+ ' ; orders%hour
TT ' ()* % T+ ' -%; ' !.&- hour or 35.- minutes
d. 4n average/ ho# long does it ta1e an order to finish drying process/
from the time the order finishes the #ashing process$
()* ' 5/ T+ ' ; order%hour
TT ' ()* % T+ ' 5%; ' !.;5- hour or -.- minutes
e. 4n average/ ho# long does an order stay in 8oney laundry$
!.&-6!.;5- ' 1.- hour
Couble chec1>
()* ' -65'1/ T+ ' ; order%hour
TT ' 1%; ' 1.- hour
5. The process at *antera *aints/ a paint shop for cars/ has the follo#ing steps>
Wash Shop Dirst/ cars are #ashed and air3dried at the (ash .hop. There is one #ashing
station and it ta1es 1- minutes to #ash and air3dry a car. The cars then go to the *aint
Paint Shop> The second step is spray3painting. Cars are painted in batches of - carsE
each car ta1es - minutes to be spray3painted. There is a setup%changeover after every
batch (that is/ after every - cars) #hich involves cleaning the spray noAAles/ flushing the
spray pipes/ and then refilling them #ith paint (even for the same color for subse0uent
cars). This ta1es 1 hour. The cars then go to the Lamp .hop.
Lamp Shop The third step is drying under lamps. There are - separate drying areas each
of #hich can dry one car at a time. )t ta1es hours for a car to dry.
Assume *antera *aints is very popular/ and that there is enough demand to fully utiliAe
the capacity.
a! Cra# a process flo# diagram clearly indicating processes and inventories. Fse at least
one reverted triangle.
(A." ."4* ()* *A):T ."4*
LA8* ."4*

"! (hat is the capacity of the (ash .hop in cars per hour$
Capacity ' (1%1-) cars%min ' (1%1-),&!' 2 cars%hour
c! (hat is the capacity of the *aint .hop in cars per hour$
)n every -,-6&!'1;- minutes/ *aint .hop spray paints - cars.
Capacity ' (-%1;-) cars%min '(1%35) cars%min ' (1%35),&! cars% hour '1.&1& cars%hour
#! (hat is the capacity of the Lamp .hop in cars per hour$
Capacity' (1%),- cars%hour ' .-cars%hour
e! (hat is the capacity of the *antera *aints in cars per hour$
?ottlenec1 Capacity' 8inG2/ 1.&/ .-H ' 1.&1& cars%hour *aint .hop is the
Capacity of .ystem' *rocessing +ate of ?ottlenec1'1.& cars%hour
$! (hat is the capacity utiliAation of the *aint .hop$
As the problem assumes enough demand to fully utiliAes the system/ Dlo# rate'Capacity.
Capacity utiliAation of *aint .hop' used capacity%available capacity '
1.&1&%1.&1&'1.! 1!! B
The bottlenec1 is al#ays fully utiliAed
g! (hat is the capacity utiliAation of the (ash .hop$
Capacity utiliAation of (ash .hop' 1.&1&%2'!.2!-2!.- B
h! .uppose/ on average there are 3 cars at *antera *aints (#or1ed on or #aiting bet#een
processes) at any given time. "o# long does each car spend at *antera *aints$
Little7s La#> TT'(()*%T+)
"ere/ TT through the system' (.ystem ()*%.ystem T+)
' (3 cars%1.&1& cars per hour) '12.1; hours