Mgt 3121

Chapter #7: Supporting Facility and Process Flow

7.2. - Consider the mortgage service process shown in figure 7.3 and assume the tittle search cycle time
has changed to 60 minutes.

a. - What is the bottleneck operation and corresponding system capacity?

The Bottleneck operation is going to be the same property survey with a Cycle Time of 90 minutes.

The corresponding system capacity is: 60*1/90= 2/3 hour

b. - What is the rush order flow time?

The rush order flow time= 120

c. - What is the system capacity; if the same person performs credit report and tittle search?

The system capacity is: 60*1/105= 0.57 app. per hour

7.4. - Revisit the automobile driver’s license office, and assume that some of our previous
recommendation for investment have been implemented. For example checking for violations and
restrictions will be done on a computer terminal, with that activity now taking 30 instead of 60 seconds.
However, no additional eye-test machines or cameras were purchased.

a. - Assuming that one worker is assigned to each activity, what is the bottleneck activity and the
maximum number of applicants who can be seen per hour?

The bottleneck is 4

The maximum number of applicants who can be seen= 90 customer per hour

b. - Suggest a reallocation of activities among the six workers that would result in a service capacity of
120 applicants per hour. What investment would be required to implement your layout
recommendation?

Since the first stage will have 3 workers performing the same job which consist of 3 activities, 3 cameras
and 3 testing machines are going to be needed.

Chapter #10: Service Facility Allocation

A locally owned department store samples two customers in each of five geographic areas to estimate
consumer expending in its home appliances department. It is estimated that these customers are a good
sample of the 10,000 customers the store serves. The number of customers in each area is C1=1,500,
C2=2,500, C3=1,000, C4=3,000 and C5=2,000. It is found that the two consumers have the following
budgets in dollars for home appliances per year B11=100, B12=150, B21=75, B22=100; B31=125,
B32=125; B41=100, B42=120; and B51=120, B52=125

a. - Using the Huff retail location model, estimate annual home appliances sales for the store.

Av.Bud:(100+150)/2=125

(75+100)/2=87.5

(125+125)/2=125

(100+120)/2=110

(120+125)/2=122.5

C1B1= (125)(1500)+(87.5)(2500)+(125)(1000)+(110)(3000)+(122.5)(2000)= 1,106,250

b. - Bull’s-Eye, a chain department store, opens a branch in a shopping complex nearby. The Bull’s-Eyes
branch is three times larger than the locally owned store. The travel times in minutes from the five areas
to the two stores (j=1 for the locally owned, j=2 for Bulle’s-Eyes) are T11=20, T12=15; T21=35, T22=20;
T31=30, T32=25: T41=20, T42=25, and T51=25, T52=25. Use the Huff retail location model to estimate
the annual consumer expenditures in the home appliance section of each store assuming that Λ=1.

Let’s say: S1=1; S2=3; Λ=1

AREA:

A11= 1/20=0.05 + A12=3/15=0.20 A1=0.25

A21=1/35=0.029 + A22=3/20=0.15 A2=0.18

A31=1/30= 0.033 + A32=3/25=0.12 A3=0.15

A41= 1/20=0.05 + A42=3/25=0.12 A4=0.17

A51= 1/25=0.04 + A52=3/25=0.12 A5=0.16

PROBABILITY:
P11=0.05/0.25=0.20 P12=0.20/0.25=0.8 =187.500

P21=0.029/0.18=0.16 P22=0.15/0.18=0.84 =218,750

P31=0.033/0.15=0.22 P32=0.12/0.15=0.78 =125,000

P41=0.05/0.17=0.29 P42=0.12/0.17=0.71 =330,000

P51=0.04/0.16=0.25 P52=0.12/0.16=0.75 =245,000

S1=257,980 S2=848,270 S=1,106,250