Question.4655 - Assessment DescriptionThe purpose of this assignment is to apply a waiting line model to a business service operation in order to recommend the most efficient use of time and resources.(This assignment has been adapted from Case Problem 2 in Chapter 15 of the textbook.)Use the information in the scenario provided to prepare a managerial report for Office Equipment, Inc. (OEI). ScenarioOffice Equipment, Inc. (OEI) leases automatic mailing machines to business customers in Fort Wayne, Indiana. The company built its success on a reputation of providing timely maintenance and repair service. Each OEI service contract states that a service technician will arrive at a customer’s business site within an average of 3 hours from the time that the customer notifies OEI of an equipment problem.Currently, OEI has 10 customers with service contracts. One service technician is responsible for handling all service calls. A statistical analysis of historical service records indicates that a customer requests a service call at an average rate of one call per 50 hours of operation. If the service technician is available when a customer calls for service, it takes the technician an average of 1 hour of travel time to reach the customer’s office and an average of 1.5 hours to complete the repair service. However, if the service technician is busy with another customer when a new customer calls for service, the technician completes the current service call and any other waiting service calls before responding to the new service call. In such cases, after the technician is free from all existing service commitments, the technician takes an average of 1 hour of travel time to reach the new customer’s office and an average of 1.5 hours to complete the repair service. The cost of the service technician is $80 per hour. The downtime cost (wait time and service time) for customers is $100 per hour.OEI is planning to expand its business. Within 1 year, OEI projects that it will have 20 customers, and within 2 years, OEI projects that it will have 30 customers. Although OEI is satisfied that one service technician can handle the 10 existing customers, management is concerned about the ability of one technician to meet the average 3-hour service call guarantee when the OEI customer base expands. In a recent planning meeting, the marketing manager made a proposal to add a second service technician when OEI reaches 20 customers and to add a third service technician when OEI reaches 30 customers. Before making a final decision, management would like an analysis of OEI service capabilities. OEI is particularly interested in meeting the average 3-hour waiting time guarantee at the lowest possible total cost.Managerial ReportDevelop a managerial report (1,000-1,250 words) summarizing your analysis of the OEI service capabilities. Make recommendations regarding the number of technicians to be used when OEI reaches 20 and then 30 customers, and justify your response. Include a discussion of the following issues in your report:What is the arrival rate for each customer?What is the service rate in terms of the number of customers per hour? (Remember that the average travel time of 1 hour is counted as service time because the time that the service technician is busy handling a service call includes the travel time in addition to the time required to complete the repair.)Waiting line models generally assume that the arriving customers are in the same location as the service facility. Consider how OEI is different in this regard, given that a service technician travels an average of 1 hour to reach each customer. How should the travel time and the waiting time predicted by the waiting line model be combined to determine the total customer waiting time? Explain.OEI is satisfied that one service technician can handle the 10 existing customers. Use a waiting line model to determine the following information: (a) probability that no customers are in the system, (b) average number of customers in the waiting line, (c) average number of customers in the system, (d) average time a customer waits until the service technician arrives, (e) average time a customer waits until the machine is back in operation, (f) probability that a customer will have to wait more than one hour for the service technician to arrive, and (g) the total cost per hour for the service operation.Do you agree with OEI management that one technician can meet the average 3-hour service call guarantee? Why or why not?What is your recommendation for the number of service technicians to hire when OEI expands to 20 customers? Use the information that you developed in Question 4 (above) to justify your answer.What is your recommendation for the number of service technicians to hire when OEI expands to 30 customers? Use the information that you developed in Question 4 (above) to justify your answer.What are the annual savings of your recommendation in Question 6 (above) compared to the planning committee's proposal that 30 customers will require three service technicians? (Assume 250 days of operation per year.) How was this determination reached?Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.You are required to submit this assignment to LopesWrite. A link to the LopesWrite technical support articles is located in Class Resources if you need assistance.Benchmark InformationThis benchmark assignment assesses the following programmatic competency:MBA2.3 Analyze data using appropriate statistical modeling.
Answer Below:
Data xxxxxxxx Case xxxxxxxxxx CamarilloGrand xxxxxx UniversityBUS- xxxxxxxxx Alin xxxxxxxxxxxxxxxx th xxxx Analysis xxxx StudyConsidering xxxxxx Equipment xxx that xxx been xxxxxxxxxxx itself xx a xxxxxxxx provider xx timely xxxxxxxxxxx and xxxxxx service xxx automatic xxxxxxx machines xxxxxxx within xxx scope xx future xxxxxx there xx a xxxxxxx regarding xxx ability xx a xxxxxx technician xx meet xxx -hour xxxxxxx guarantee xx the xxxxxxxx base xxxxxxx the xxxxxxx applies x waiting xxxx model xx order xx analyze xxx s xxxxxxx capabilities xxx make xxxxxxxxxxxxxxx on xxx optimal xxxxxx of xxxxxxx technicians xxxxx employ xxxxx on xxx expansion xx customer xxxxxx pattern xxxxxxx in xxxxx of xxxxxxx rate xxx every xxxxxxxx with xxx given xxxx that xxx company xxxxx to xxxx around xxxxxxxx and xxxx of xxxx a xxxxxxx service xx an xxxxxxx rate xx service xxxx per xxxxx of xxxxxxxxxx the xxxxxxx rate xxx be xxxxxxxxxx as xxxxxxx calls xxx hour xxx customer xxxxxxxxx for xxxxxxxx total x service xxxxx per xxxx wherein xxx total xxxxxxx rate xxx customer xx around xxxxxxxx calls xxx hour xxxxxxxx the xxxxxxx rate xxxxxxxxxx as xxxxx to xxxxx the xxxx at xxxxx the xxxxxxxxxx could xxxxxxxx service xxxxx so xxxxxxxxxxx the xxxx study xxxxx the xxxxxxxxxx spends xxxx on xxxxxx time xxx hours xx repair xx the xxxxx service xxxx per xxxxxxxx is xxxxxx hours xxx the xxxxxxx rate xxx be xxxxxxxxxx by xxxxxxxx per xxxx implying xxxx the xxxxxxxxxx can xxxxxxx customer xxx hour xxxxxxx the xxxxxxxxxxxx waiting xxxx models xxxx to xxxxxx that xxxxxxxx arrive xx the xxxxxxx facility xxxxxxxx however xx this xxxx the xxxxxxxxxx needs xx travel xx average xx hour xx reach xxxxx customer xxxx this xxxxxxxxxxxxx the xxxxxxxx wait xxxx can xx predicted xx the xxxxx should xxxxxxx for xxxx the xxxxxx time xxx the xxxxxxx time xx order xx calculate xxx total xxxxxxxx waiting xxxx which xx the xxx of xxxxxxx time xx the xxxxx only xx there xx a xxxxx the xxxxxx time xxxx is xxxxx average xx hour xxx service xxxx that xx hours xxx the xxxxxx now xxxxxxxxxxx the xxxxx waiting xxxx that xxx be xxxxxxx as xxxxxx Wqueue xxxxxx time xxxxxxx time xxxx the xxxxxx is xxx waiting xxxx in xxx queue xxx to xxx technician xxxxx busy xxxx another xxxxxxxx Fourth xxxxxxxx the xxxxxxx line xxxxx that xxxxxxx M x queue xxx to xxx single xxxxxxxxxx handling xxxxxxx calls x implying xxxx inter-arrival xxxxx and xxxxxxx times xxx exponentially xxxxxxxxxxx wherein x common xxxxxxxxxx in xxxxxxx theory xxx the xxxxxx consists xx a xxxxxx server xxxx is xxx technician xxxxx the xxxxxxx line xxxxx to xxxxxx performance xxxxxxx that xxx be xxxxxxx as xxxxxxxxxx the xxxxxxxxxxx of xx customer xxx there xx system xx such x scenario xxx technician xxxx be xxxx so x now xxxxxxxxxxx average xxxxxx of xxxxxxxx flow xx the xxxxxxx line xx - x implying xxx average xxxxxx of xxxxxxxx in xxx waiting xxxx Considering xxxxxxx number xx customers xx the xxxxxx as x implying xxx sum xx those xx the xxxxx and xxxxx being xxxxxxxx where x Lq xx the xxxxxxx number xx customers xx the xxxxxx in xx terms xx average xxxx a xxxxxxxx is xxxxxxxxx to xxxxxxx in xxx queue xx Lq xxxxx is xxx average xxxxxxx time xxxxxx the xxxxxxxxxx arrives xx the xxxxx hand xxxxxx the xxxxx of xxxxxxxx waiting xxxxx their xxxxxxx is xxxx online xx the xxx of xxxxxxx time xxx the xxxxxxx time xxxx is x Wq xxxxxxx time xxxxx is xxx total xxxx time xxxxx the xxxxxxx is xxxx in xxxxxxxxx Considering xxxxxxxxxxx that x customer xxxx have xx wait xxxx than xxx hour xxxxx can xx calculated xx using xxxxxxxxxxx distribution x Wq xx P xx e- xx the xxxxxxxxxxx percentage xxxx a xxxxxxxx will xxxx to xxxx more xxxx hour xxxxxx in xxxxx of xxxxx cost xxx hour xxx the xxxxxxx operation xxxx the xxxx study xxxxx the xxxx of xxx technician xx per xxxx and xxx cost xx customer xxxxxxxx is xxx hour xxx each xxxxxxxx in xxx system xxxxx C xxxxxxx the xxxxx cost xxx hour x X x X xxxxxxx is xxx total xxxx per xxxx for xxx service xxxxxxxxx Fifth xxxxxxxxxxx the xxxxxxxxxx of xxx s xxxxxxx to xxxx the xxxxx guarantee xx basing xx on xxx calculations xxxx before xxxxx the xxxxx average xxxx time xx at xxxxx implying xxxx it xxxxxxx hours xxxxxxxxx and xxx technician xxxxxx consistently xxxx the xxxxx service xxxxxx as xxxxxxxxxx for xxxxxxxx customers xxxxx considering xxx recommendations xxx hiring x technician xxxx OEI xxxxxxx to xxxxxxxxx the xxxxx arrival xxxx will xx total x service xxxx per xxxx meaning xxxx for xxx technician xxxxx is x service xxxx is xx customer xxx hour xxxxxxxx in xxxxxxx the xxxxxxxxxx will xxx be xxxx to xxxxxx the xxxxxxxxx arrival xxxx efficiency xx will xxxx to x higher xxxxxxx time xx suggesting xxxx OEI xxxxxx hire x second xxxxxxxxxx whenever xxx customer xxxx reaches xx reduce xxxxxxx times xxx costs xxxxxxx in xxxxx of xxxxxxxxxxxxxxx for xxxxxx a xxxxxxxxxx whenever xxx expands xx customers xxxxxxxx OEI xxxxxxx to xxxxxxxxx the xxxxx arrival xxxx can xx calculated xx total x service xxxxx per xxxx implying xxxx one xxxxxxxxxx will xx overwhelmed xxxxx demands xxxxxx of xxxxx technician xx improve xxxxxxx efficiency xxxxxxxx the xxxxxxxx base xxxxxxx Eighth xxxxxxxxxxx the xxxxxx savings xxxx compared xx the xxxxxxxxx s xxxxxxxx wherein xxxxxxxx operational xxxx per xxxx the xxxxxx cost xx having xxxxx technicians xx cost xxx year x x x dollars xx in x scenario xxxxx two xxxxxxxxxxx are xxxxxxxx then xxx cost xxx year xxxx two xxxxxxxxxxx x x x xxxxxxx with xxxxx data xxx annual xxxxxxx from xxxxxx two xxxxxxxxxxx rather xxxx three xxxxx be xxxxxxx In xxxxxxxxxx based xx the xxxxx calculations xxx should xxxxxx two xxxxxxxxxxx whenever xxxxx customer xxxx reaches xxx three xxxxxxxxxxx when xxxxxxxx the xxxxxxxx base xxxxxxx so xxxx it xxxxxxxxx customer xxxxxxx times xxx service xxxxx while xx the xxxx time xxxxxx OEI xxx meet xxx service xxxxxxxxx efficiently xxxxxxxxxxxxxxxxxx D x Sweeney x J xxxxxxxx T x Camm x D xxxxxxx J x Fry x J xxxxxxx J x Quantitative xxxxxxx for xxxxxxxx with xxxxxxxxxx th xx Boston xx Cengage xxxxxxxx ISBN-More Articles From Quantitative Methods
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