sm05 Test Banks PDF

Solutions Manual for Operations Management: Creating Value Along the Supply Chain, Canadian Edition 5- 1
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CHAPTER 5 – SERVICE DESIGN
ANSWERS TO QUESTIONS, PROBLEMS, AND CASE PROBLEMS
Answers to Questions
5-1. Services are acts, deeds, performances, or relationships that produce time, place, form, or
psychological utilities for customers.
5-2. (1) & (2) Services are intangible and perishable. This makes design more difficult.
Intangibles are harder to specify and perishable items have to be redesigned frequently.
(3) & (4) Services have high customer contact and variable output. Because people are
usually involved in services (both on the side of the customer and the service provider),
unexpected things can happen. Designs must be flexible, but must also include contingency
plans.
(5) Consumers do not separate the service from the delivery of the service, so everything
about the service environment (layout, attitude of employees, etc.) is part of the service
design.
(6) Services tend to be decentralized and geographically dispersed. Thus, a design must be
“workable” in any locale, or be adapted to the specific environment in which it must
operate. Also, service providers have more authority and may provide the service
differently.
(7) & (8) Services are “consumed” more often than products, and can be easily emulated.
This means that improvements to service design are undertaken more frequently than with
products, and the results are more immediate. Risks can be taken on a small scale.
5-3. Bank—types of accounts, credit cards, loans, branches, hours of operation. ATMs, degree
of customization, convenience, decor, information on-line, mortgages, automatic deposit
and withdrawal, etc.
Airline—flights to particular destinations, reservations, check in, baggage handling,
accessibility, types of planes, crowding of planes, service personnel, meals, comfort,
disruptions, on-time arrivals and departures, length of flights, number of direct flights,
timing of flights, etc.
Lawn Service—frequency of service, jobs (cutting lawn, fertilizing, watering, planting,
landscaping), equipment, evaluation of lawn needs, demeanour and performance of
personnel, ease of payment, etc.
5-4. Automated banking—more readily available, accessible from home, more services
available (stamps, airline tickets, concert tickets), etc.
Higher education—break out of semester segments, self-paced learning, access from home
or job site, distance learning, expert-a-day (i.e., more than one instructor), etc. Healthcare
—more available, access from schools, records more accessible, availability and
instruction for selfcare and self-evaluation, etc.
5-5. SSME (Services Science, Management, and Engineering) is “the application of scientific,
management, and engineering disciplines to the tasks or services that one organization
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beneficially performs for and with another.” IBM recognizes the need for a systematic
multidisciplinary study of service systems as industrialized economies are increasingly
based on services. In Canada, services account for 76% of the labour force and 72% of
GDP.
5-6. Examples might include a number of retail stores, banks, movie theatres, service stations,
university operations and functions, computer access, telephone calls, etc.
5-7. The ratio of the arrival rate to the service rate must be less than 1, which means that the
service rate must be greater than the arrival rate. If customers arrive faster than they can be
served, the system eventually develops an infinite queue.
5-8. Examples might include a doctor’s office, a faculty advisor, a machine shop, a number of
breakdown/repair systems in which the operating units are finite, etc.
5-9. These elements are queue discipline, calling population, arrival rate, and service rate.
5-10. Waiting lines are an integral part of a multitude of business operations, and their efficient
design and management are an important part of these businesses.
5-11. The mean effective service rate is the number of servers multiplied by the service rate, and
it must exceed the arrival rate.
5-12. a. Hair salon: multiple-server; first-come, first-served or appointment; calling population

can be finite (appointments only) or infinite (off-the-street business).
b. Bank: multiple-server; first-come, first-served; infinite calling population.
c. Laundromat: multiple-server; first-come, first-served; infinite calling population.
d. Doctor’s office; single- (or multiple-) server; appointment (usually); finite calling
population.
e. Advisor’s office: single-server; first-come, first-served or appointment; finite calling
population.
f. Airport runway: single-server; first-come, first-served; finite calling population.
g. Service station: multiple-server; first-come, first-served; infinite calling population.
h. Copy centre: single- or multiple-server; first-come, first-served; infinite calling
population.
i. Team trainer: single-server; first-come, first-served or appointment; finite calling
population.
j. Mainframe computer: multiple-server; first-come, first-served (or priority level);
infinite calling population.
5-13. The addition of a new counter created two queues. The multiple-server model is for a
single queue with more than one server.
5-14. The traditional cost relationship for waiting line analysis is to provide a level of service
that minimizes the total cost of providing service and the cost of customers waiting, which
is similar to the traditional quality cost relationship to provide a level of quality that
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minimises the total cost of poor quality and the cast of prevention. However, the recent
emphasis on quality management suggests that the level of service should be greater than
the minimum cost level, approaching a 100 percent service level.
5-15. a. Single-channel, single-phase—a single server; an example is a post office with one
postal clerk.
b. Multiple-channel, single-phase—two or more servers in parallel; an example is a post
office with two or more clerks.
c. Single-channel, multiple-phase—a series of single-servers that the customer must pass
through; an example is a medical treatment facility (e.g., hospital) wherein a patient
must first see a nurse and then see a doctor.
d. Multiple-channel, multiple-phase—a series of two or more servers in parallel; an
example is a medical facility with two or more series of nurses and doctors.
5-16. Total waiting line cost is the sum of the cost of providing service and the cost of customer
waiting, which generally have an inverse relationship to each other. Thus, as the level of
service is increased, the cost of service increases, whereas the cost of waiting decreases.
The optimal level of service coincides with the minimum point on the total waiting line
cost curve.
5-17. a. False. The operating characteristic values may be higher or lower, depending on the
magnitude of the standard deviation compared to the mean of the exponentially
distributed service time.
b. True. Since there is no variability, the operating characteristics would always be lower.
5-18. If a service facility has a Poisson input with parameter  and an exponential service
distribution with parameter  (where    ), then each successive facility in a multiple-
phase system will have a Poisson input with  . This enables each phase to be analyzed
independently; the aggregate operating characteristics at each service facility are summed.
5-19. When arrivals are random, in the short run more customers may arrive than the serving
system can accommodate.
5-20. An example is when customers are served according to a prearranged schedule or

alphabetically or are picked at random.
5-21. When   .
5-22. Automated equipment or robots.
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Answers to Problems
(Answers may vary due to rounding)
60
 16.67 customers per hr
5-1. 3.6
60
 25 customers per hr
2.4
Lq 
2

 16.67  2
       25  25  16.67  1.33 customers waiting
Wq 


 16.67 
       25   25  16.67  0.08 hr or 4.80 minutes waiting in line
This is not very good service. Although another window (server) might reduce waiting
time, the service time in excess of 2 minutes is still too long; it should probably be less
than 1 minute. Thus, the process of filling orders needs to be improved.
5-2.  8/hr
 12 / hr
 8
Wq   0.167 hr  10 min 
      12  4 
 8
  0.667
 12
5-3.  5/hr
 10 / hr
Lq 
2

 5 0.5 cars2
      10  5 
a.
1 1
W  0.20 hr  12 min 
  5
 5
Wq   0.10 hr  6 min 
      10  5 
b. If the arrival rate is increased to 12 per hour, the arrival rate would exceed the service
rate; thus, an infinite queue length would result.
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5-4. The arrival rate must be on an hourly basis.
60
 7.5 per hour
8
 10 per hour
Lq 
2

 7.5  2.25 parts
2
      10  2.5 
 0.75, I 0.25


5-5. 
 10 per hr
 0.90

0.90 10
Therefore, and  9 per hour, or 1 part every 6.67 minutes.
5-6.  5 per hour
60
 7.5 per hour
8
Lq 
2

 5  1.33 2
      7.5  2.5 
a.
 5
Wq   0.26 hr  16 min 
      7.5  2.5 
b.
1 1
W  .4 hr  24 min 
c.    7.5  5
45 ,
d. 45 minutes per hour is a 60 or 0.75, utilization factor.  cannot exceed 0.75.
 5
  0.67 at present
 7.5
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Therefore, a new air traffic controller is not needed.
5-7.  12 per hour
60
 20 per hour
3
One window:
 12
Wq   0.075 hr  4.5 min 
      20  8 
Two windows:
 20 per hour (does not change)
However, the arrival rate for each window is now split.
 6 per hour
 6
Wq  
      20  14  0.021 hr  1.29 min 
4.5  1.29 3.21 min reduction in waiting time

3.21$2, 000 $6420
Cost of window $20, 000
$6420  $20, 000; Therefore, a second drive-in window should not be installed according
to cost alone. However, the existing wait time of 4.5 minutes seems excessive, thus in
terms of providing quality service, the second window should probably be installed.
5-8.  10 per hour
60
 12 per hour
5
 10
L  5
  2
Lq 
2

 10  4.17 2
      12  2 
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1 1
W  0.5 hr  30 min 
  2
 10
Wq   0.42 hr  25 min 
      12  2 
 10
  0.83 83%
 12
5-9.  120 per day

 140 per day
Lq 
2

 120  5.14 trucks
2
      140  20 
a.
1 1
W  0.05 day
   20
8 hr / day 60 min / hr 480 min

0.05 480 24 min.
W 24 min
 120
Wq   0.043 day  20.6 min 
      140  20 
b. 24  15 9 min
9 minutes $10, 000 $90, 000 per year loss presently.

With a new set of scales the arrival rate would be split.
 60 per day per scale

W = 1/ (day
8 hr/day * 60 min/hr * 0.0125 day = 6 minutes
The entire $90,000 would be saved.

Since the scales cost $50,000 per year, they should be installed.
5-10. Arrival rate = 120 trucks per hour

Service rate = 140 trucks per hour
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P(0) = 0.143
P(1) = 0.122
P(2) =
P(3) =
P(4) =
P( < = 4) = 0.537
P( > = 5) = P( 1 - < = 4) = 0.463
This solution assumes that arriving trucks will pass by the station if they see 4 trucks
waiting in a line. Since four trucks are waiting, one truck is being served for a total of 5
trucks in the system.
5-11.  10 per hour

 12 per hour
s 2
1
P0 
 1 1  10  1  10    2   10  
n 2
        
 0 n !  12   2!  12   24  12 
1

 1  10  0 1  10 1  1  10  2  20 
          
 0!  12  1!  12   2  12   12 
.412
s

  
L  P 

0
 s  1 ! s    2 
 10   12   0.83
2
  0.412   0.93
1! 24  10 
2

Lq L  1.01  .83 .177

L 1.01
W  .101 hr  6.05 min 
 10
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The student will probably recommend adding the advisor.
5-12.  0.25 per hour per patient

 6 per hour
N 15 patients
1 1
P0  n
 n
0.423
N 15
N!    15!  0.25 
  N  n !     15  n  !  6 
n 0   n 0
   0.25  6 
Lq  N     1  P0  15     1  0.423
    0.25 
0.592 patients
L Lq   1  P0  0.592   1  0.423 1.168 patients
Lq 0.592
Wq  
 N  L   15  1.168   0.25
0.171 hr or 10.27 minutes waiting
1 1
W Wq  0.171 
 6
0.338 hr or 20.27 minutes in system
The nurse is correct; the waiting time for a patient who calls does average about 10
minutes. However, the nurse is currently idle a little over 40 percent of the time, thus, the
supervisor cannot achieve both objectives, i.e., a reduced waiting time but no more idle
time. If the hospital is quality-conscious they would add a second nurse to reduce waiting
time regardless of idle time. Perhaps the nurse could be shared with another ward or group
of patients.
5-13. Without fax operator:

 20/hr
 30 / hr
L 2.0 employees
Lq 1.33 employees
W 0.10 6 min
Wq 0.067 4 min
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With fax operator:
 20/hr
 40 / hr
L 1.0 employees
Lq 0.50 employees
W 0.05 3 min
Wq 0.025 1.5 min
The system operating characteristic required to perform the decision analysis for this
problem is L, the mean number in the system. Note that by reducing the mean service time
by half a minute, from 2 minutes to 1.5 minutes, which is 25 percent reduction, we have
reduced the mean number in the system by 50 percent, from 2 to 1 employee in the system
on the average.
Service Waiting Total

Alternative Cost/Hour Cost/Hour Cost/Hour
1. No fax operator $0  2   10.20  $20.40 $20.40
2. Use fax operator $8  1  10.20  $10.20 $18.20
The decision analysis, using the cost figures provided, can be summarized as follows,
where waiting cost includes time waiting in line and time at fax machines:
If the number of working hours per day is 8, this analysis can be converted to a daily basis
by multiplying all figures by 8, yielding $163.20 per day expected total waiting cost of
alternative 1 and $145.60 per day expected total cost of service and waiting for alternative
2. Thus, the firm’s management should assign an operator to the fax machine, with an
expected daily savings of $17.60.
5-14.  90 per hour

 60 per hour
s 2
1
P0 
 1 1  90  n  1  90  2  2  60  
        
 0 n !  60   2!  60   120  90  .143
s

  
L  P0 

 s  1 ! s    2 
=
(90)(60)(1.5)² (.143)+1.50=3.43
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1!(30)²

Lq L  3.43  1.50 1.93

L 3.43
W  .038 hr  2.29 min 
 90
Lq 1.93
Wq   .021 hr  1.29 min 
 90
60
 3.75 parties per hour
5-15. 16
60
 0.75 parties per hour
80
s 6
1
P0 
 5 1  3.75  n 6
1  3.75   6  3.75  
       
 0 n !  0.75   6!  0.75    6   .750   3.75  0.005
L 7.94
 3.75
Lq L  7.94  2.938
 .750
Lq 2.938
Wq   .783 hr or 47 minutes waiting
 3.75
L 7.94
W  2.11 hr or 127 minutes at the restaurant
 3.75
A 47 minute waiting time may seem long, but actually restaurant customers sometimes
perceive a waiting line and a reasonably long waiting time as an indicator of “quality.”
Thus, in this instance lengthy service may be considered as good quality.
5-16.  300
 120
s 3
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1
P0 
 2 1  300  n  1  300  3  360 
       
 0 n !  120   3!  120   60  0.045
s

  
  300   120   2.5 
3
 
L P0    0.045  2.5 6.01
 s  1 ! s    2  2! 60 
2

Lq L  6.01  2.5 3.51

Lq 3.51
Wq   .0117 hr  0.70 min 
 300
No, another wrapper is not needed.
5-17.  6.5 per hour

 4 per hour
s 2
1
P0 
 1 1  6.5  n 2
1  6.5   8 
       
 0 n !  4   2!  4   1.5  0.103
s

  
  6.5   4   1.625 
2
 
L P0    0.103  1.625 4.78
 s  1 ! s    2  1! 1.5 
2

Lq L  4.78  1.625 3.155

Lq 3.155
Wq   0.485 hr  29.14 min 
 6.5
For s 3,
1
P0 
 2 1  6.5  n  1  6.5  3
       2.18 
 0 n !  4   3!  4  0.182
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
s

  
  6.5   4   1.625 
3
 
L P0    .182   1.625 1.96
 
s  1 ! s     2  2!  
5.5
2

Lq L  1.96  1.625 0.33

Lq 0.33
Wq   0.05 hr  3.1 min 
 6.5
Hire a third doctor.
5-18.  9
 6
For s 2 :
P0 0.143
s
1     s 
Pw      P0
s !     s   
1  9    2  6 
2
      0.143 0.643
2!  6    2   6   9 
Thus, two salespeople are not enough.
For s 3 :
P0 0.211
1  9    3  6  
3
Pw       0.211 0.237
3!  6    3  6   9 
Thus, three salespeople are sufficient to meet the company policy that a customer should
have to wait no more than 30 percent of the time.
5-19.  35
 15
For s 3;
P0 0.064
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
s 3

 35   15   
35
  
   15  35
2
L P0   0.064   4.47
 s  1 ! s    2  2!   3  15   35 15
 35
Lq L  4.47  2.14
 15
Lq 2.14
Wq   .061 hr 3.67 min
 35
Three servers should be sufficient.
5-20.  4 per day

 ?
If total repair time is 4 days,
1 1
W 3
 ;   4 ; 3  12 1 ; 3 13 ;  4.33
1 1
 days
 4.33
8
Average repair time  hour 1.85 hour,
4.33 or 110.8 minutes.
5-21. Arrival rate:  40 units per hour
Processing times:
1. Without additional employees:

1
1.2 min per unit
1 ; Thus, 1 50 units per hour
2. With additional employees:
1
0.9 min per unit
2
Thus,  2 66.67 units per hour
In-process inventory number in process and waiting to be processed = L= number in

system
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––


 
Without additional employees:

40 40
L1   4 units in system
50  40 10
With additional employees:

40 40
L2   1.5 units in system
66.67  40 26.67
Decision analysis: The cost of in-process inventory is

1. Without additional employees:
 4   $31 $124.00 / day
2. With additional employees:
 15  $31 $4650 / day
Difference $124.00  $46.50 $77.50 / day
Thus, the optimal decision is add additional employees at a cost of $52.00 per day, yielding
a net expected savings of $77.50  $52.00 $25.50 / day.
5-22. a.  5
 2
s 3
1
P0 
 1  5 1  5   1  5   3  2 
0 1 2 3
1 5
           
 0!  2  1!  2  2!  2   3!  2   3   2   5
0.045
3
 5  2  
5

 2 5
2
L 0.045   6.0
 3  1 !   3  2   5 2
5
Lq 6  3.5
2
3.5
Wq  0.70 hr, or 42 min
5
6.0
W 1.20 hr, or 72 min
5
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
b.  5
1
25 min

 2.4
s 3
P0 0.0982
3
 5   2.4   
5
 2.4  5
L 2  0.0982   3.18
 3  1 !   3  2.4   5  2.4
5
Lq 3.18  1.1
2.4
1.1
Wq  0.22 hr, or 13.2 min, waiting time
5
The improvement in average waiting time per truck is 42  13.2 28.8 minutes. The
estimated value of this time savings is
 $750   28.8 $21, 600. Since the cost of achieving
the improved service is only $18,000, the firm should implement the improved system,
yielding an expected savings of $21, 600  $18, 000 $3, 600.
c. Alternative 1: Add a fourth loading/unloading location at the dock, yielding four

locations where each location has a mean service rate of  2 per hour.
Alternative 2: Add extra employees and equipment at the existing three dock locations
to reduce loading/ unloading times from 30 minutes to 23 minutes per truck, yielding
 2.6 per hour.
Decision analysis: The tendency of the student will be to compare the waiting time for both
alternatives. However, this is not required, since the alternatives can be evaluated using the
concept of “effective service rate,” which is determined by multiplying the number of
servers by the mean service rate. The purpose of this part of the problem is to introduce
this concept; thus, the instructor may wish to give the student a hint before assigning this
problem.
Computing the effective service rate for each alternative yields:
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Alternative 1:
 no. servers   mean service rate   4   2  8 trucks per hour
Alternative 2:
 no. servers   mean service rate   3  2.6  7.8 trucks per hour
Since the cost of each alternative is approximately equal, alternative 1, to add a fourth dock
location, is superior because it increases the effective service rate to 8 trucks per hour,
whereas adding extra resources to the existing dock increases the effective service rate to
only 7.8 trucks per hour.
5-23.  11/hr
 13.33 / hr
Lq 
2

 11 2
2       2   13.33  13.33  11 1.94 drivers
Lq 1.94
Wq   0.176 hr, or 10.6 min
 11
5-24.  50 / hr .83/min

 2/min
Lq 
2

 .83 2
2      2  2   3  .83 0.149 people in line
Lq 0.149
Wq   0.68 min waiting
 .83
n

P  n  10  1   Pn 1     P0
5-25. n n 
n
 4 
1    4.33   .0762 
10 1  .5818
P  n  10  .4182
5-26. The appropriate model is Poisson arrivals with constant service times:
 149  30 179 trucks/day  24-hr day 
1
8 min

Thus,
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
 1
    60   24  180 / day
 8
2
 179 
 180 
Lq    89.003 trucks
 179 
21 
 180 
Lq 89.003
Wq   0.4972 days
 179
0.4972  24  11.93 hr
Yes, the port authority can assure the coal company that their trucks will not have to wait
longer than 12 hours each on the average.
5-27. 7:00 A.M. to 9:00 A.M.:  8

 2.5
s must equal at least 4 for the mean effective service rate to exceed the arrival rate.
Wq 0.30 minutes
with 4 cashiers, so 4 is sufficient.
9:00 A.M. to Noon:  4

 2.5
s must equal at least 2.
Wq 0.711 minutes
Noon to 2:00 P.M.:  14

 2.5
s must equal at least 6 cashiers.
Wq 0.823 minutes
2:00 P.M. to 5:00 P.M.:  8

 2.5
Wq 0.298 minutes
s must equal at least 4 cashiers. with 4 cashiers, so 4 is sufficient.
5-28.  4
 1.333
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
a. s 4
P0 0.038
L 4.53
Lq 1.53
W 1.13 hr 67.97 min
Wq 0.382 hr 22.96 min
b. s 5
P0 0.0466
L 3.36
Lq .355
W .838 hr 50.33 min
Wq .088 hr 5.32 min
Although the customer waiting time is reduced from 22.96 minutes to 5.32 minutes, 2.3
minutes does not seem excessive for a hair stylist; thus, the impact of adding a fifth stylist
may not be significant.
5-29.  .00139/hr
 .08333 / hr
Servers 1 ; N 8
P0 .8690
1  P0 .1310
 
Lq N     1  P0  .02
  
L Lq   1  P0  .1476
Lq
Wq  1.52 hr
 N  L 
1
W Wq  13.52 hr

A patrol car is out of service an average of 13.52 hours when being repaired. Whether or
not this is adequate repair service depends on how busy the police department is.
5-30.  8.57/hr
 3.0 / hr
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
s 4
s 12.0
P0 0.046  from Table 17.2 
1  P0 .954
s

  
L  P 

2 0 
 s  1 ! s   
4
 8.57   3.0  
8.57 

 3.0  8.57
 2  0.07   3.98
 4  1 !   4   3.0   8.57  3.0
 8.57
Lq L  3.98  1.127
 3.0
L 3.98
W  .465 hr 27.89 min
 8.57
Lq 1.127
Wq   0.132 hr 7.89 min
 8.57
5-31. The appropriate model for this problem is the finite calling population, exponential service
times.
1 1
6 days   per day
 6
1 1
2 days   per day
 2
N 6
First, compute the following values needed in the formula calculations:

N!
n n
N!  
   N  n  ! 
n  N  n !  
0 720 / 720 1 1 1
1 720 /120 6 1/3 6 / 3 2
2 720 / 24 30 1/9 30 / 9 3.333
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
3 720 / 6 120 1/27 120 / 27 4.444

4 720 / 2 360 1/81 360 / 81 4.444
5 720 /1 720 1/243 720 / 243 2.963
6 720 /1 720 1/729 720 / 729 0.987
Sum 19.171
1 1 1
P0  n
  0.05216
N
N!    Sum 19.171
  N  n  !   
n 0
1 1

 
Lq  N   1  P0  6  1 2  1  0.05216 
6

6 6  4  0.94784  6  3.791 2.209
2.2 units expected in the queue  waiting to be repaired 
L Lq   1  P0  2.2  0.94784

3.15 units expected in the system  being repaired and waiting to be repaired 
Lq 2.22.2 2.2
Wq    
 N  L    6  3.15 1 2.85 0.475
6 6
4.63 days expected time in the queue  waiting to be repaired 
1
W Wq  4.63  2

6.63 days expected time in the system  being repaired and waiting to be repaired 
1
Since the breakdown rate is 6
per day and the number of working days per year is 250, the
250 41.67.
expected number of breakdowns per year is 6
The expected time at the repair shop per breakdown times the number of breakdowns per
year is 6.63 41.67 267.27 machine-down days per year.
The annual cost of machine downtime is 276.27 50 $13,813.50.
The net difference in the cost of the new service agreement under consideration is
$15, 000  $3, 000 $12, 000.
Therefore, the company should select the new service agreement at a net expected cost
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
savings of $13,813.50  $12, 000 $1,813.50.
5-32.  40/hr
 12 / hr
s 4
s 48
P0 0.021
1  P0 .979
s 4

 40   12   
40
  
L  
P  
 12 
 .021 
40
6.62
2 0   4  1 !   4   12   40  2
 s  1 ! s    12
 40
Lq L  6.62  3.289
 12
L 6.62
W  .166 hr 9.93 min
 40
Lq 3.289
Wq   .082 hr 4.93 min
 40
 40
  .833
a. s  48
Idle time 1  .833 .167; thus, the postal workers are idle 16.7 percent of the time,
which does not seem excessive.
Wq 4.93 L 3.28
b. minutes and q customers, neither of which seems excessive
although the waiting time borders on too long.
c. A customer can expect to walk in and get served without waiting approximately 2
percent (i.e., P0 .021 ) of the time.
Overall, the system seems moderately satisfactory from a customer services perspective.
However, the post office might want to analyze the system with five stations instead of
four because of the somewhat long waiting time.
Lq 16.35 manuscripts
5-33.
L 27.78 manuscripts
Wq 2.09 weeks
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
W 3.47 weeks
U 0.952
5-34. a. By testing several different numbers of servers (teams) for the multiple server model
using Excel, it is determined that at least 4 teams are required to be within the two
week waiting period. The operating characteristics are:
Lq 1.128 jobs
L 3.98 jobs
Wq 0.28 weeks
W 1.00 weeks
b. This can be determined in two ways. First, if the average number of jobs arriving each
week is 4, at $1,700 apiece they will generate $6,800 in revenue per week whereas 4
painting teams will cost $2,000 per week for a difference of $4,800 per week.
Alternatively, if there are approximately 4 jobs in the system
 L 3.98  over a one
week period
 W 1.00  then that will result in $6,800 in revenue for two weeks with
the 4 teams paid $2,000 for two weeks or approximately $4,800 per week.
5-35. Regular copier High-speed copier

 7 / hr.  7 / hr.
 10 / hr.  20 / hr.
Wq 14 minutes Wq 1.62 minutes
W 20 minutes W 4.62 minutes
Cost of waiting: regular copier $3.33 per employee 7 3.33 $23.31 per hour
Cost of waiting: high-speed copier = 10 x $0.77 = $0.71 x 7 = $5.39 per hour
The lease cost is $8 per hour higher for the high-speed copier, which would still make it
more economical than the regular copier, i.e., $13.39 versus $23.31.
5-36. Single server with finite calling population:
Current repair service:

 0.05 / day
 1/ day
W 2.6 days
Downtime Cost 2.6  24   $5  $312
New repair service:

 0.05 / day
 2
W .77 days
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Downtime Cost  .77   24   15  $277.20

Even at $10 per hour more, the new service is better.
5-37.  6.5 cabs/hr.

 7.05 cabs / hr.
In this finite queue system the hotel guests are treated as the servers and the cabs are the
customers. The guests have a service rate of 8.5 minutes (5 minutes to arrive and 3.5
minutes to load), thus  7.05 cabs per hour are “served.” The cabs arrive at the cab line
at the rate of 6 per hour. The system size is 6 customers or cabs.
Wq the average time a cab must wait for a fare

a.
17.34 minutes
b. Probability
 x 6  .0006
5-38. One drive-through window:

 10 per hour
 15 per hour
Wq 8 minutes
a. No,
Wq 2.50 minutes
b. Yes,  24 and
W .53 minutes
c. No,  20,  24 and q
5-39.  depends on the number of registers

 customers / hr./ register
Excel is used to analyze a system with a number of single server queues. For example, if 2
registers are open then  140 customers (per register). If 4 registers are open,  20
and W 8.12 minutes which meets the service goal of W 12 minutes. Thus 4 registers
need to be opened.
5-40. Multiple server model:
 40 / hr.
 15 / hr.
s 3
Wq 9.57 minutes
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
At $2 per minute, a 9.57 minute wait “costs” $19.14 per customer. The cost of an
employee is only $0.20 per minute thus the hotel should hire enough clerks so there is
virtually no wait, i.e. 5 servers will result in almost no wait.
5-41. Finite calling population:

.7
  .04375 calls per room per day
16
 2 calls / hour
average utilization 1  P0
1  .5776
.4224
Wq .31 hr. 19.1 min.
W .81 hr. 49.1 min.
The system seems adequate. 19.1 minutes is somewhat long to wait for service, however
the staff person is only busy 42.2% of the time as is thus adding another person seems
excessive.
5-42. Finite Queue Model

14
  1.17 customers / month
12
5 weeks 1.25 months
1
 .80 piece / month
1.25
W 8.92 months
Po = 0.011
1- Po = 0.989 = 98.9% busy
Pm = 0.323
1-Pm = .6765
5-43. Finite calling population
 0.0625 / hour
 0.67 / hour
N 10
Lq 1.177 athletes waiting

a.
Wq 2.33 hours waiting
W 3.82 hours in the system
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Utilization .7551
The system does not seem effective. An athlete must wait 2.33 hours which seems too
 P .24  to work on her own studies.
long, and Judith does not have much time 0
b. By reducing the number of athletes Judith is responsible for to 6 (i.e., N 6 ) the

waiting time is reduced to .89 hour (53.4 minutes) which seems more reasonable, and
Judith has 51 percent of her time free (i.e., P0 .5109 ).
5-44. a.  45 passengers per hour

 52 passengers per hour
2
Lq 
 (   )
(45) 2

(52)(52  45)
5.56 passengers

Wq 
 (   )
45

52(52  45)
7.42 minutes
b. A multiple server model with 3 security scans can accommodate this increased
passenger traffic level.
 125 passengers per hour
 52 passengers per hour
c=3
Po .066
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
  ( /  )c  
L   Po 
 (c  1)!(c    ) 
2 
 (125)(52)(125/52)3  125
 2 
.066 
 (2)!(156  125)  52
5.52 passengers

Lq  L 

5.52  (125/52)
3.121 passengers
Lq
Wq 

3.121

125
1.50 minutes
5-45. A multiple server model with 4 cranes will accommodate the level of container traffic at
the inland port.
 = 9 containers per hour

 = 60/25 = 2.4 containers per hour
c = 4 cranes
Po = .007
L = 16.73 containers
Lq = 12.98 containers
W = 1.86 hours
Wq = 1.44 hours
5-46. Constant service time model
 36 passengers/(4.1  3.5 minutes) = 4.74 passengers/minute

 = 4.4 passengers/minute
2
Lq 
2 (   )
(4.4) 2

2(4.74)(4.74  4.4)
6.006 groups of 36 passengers waiting
(6.006)(36)
216.21 passengers
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Answers to Case Problem 5.1: Streamlining the Refinancing Process
Current Process:
Most people assume that bringing in more specialists would speed up the process. But in this
case, the loan passes through 7 person’s hands and the customer interacts with several different
service providers. A more efficient operation would have only one individual as the point of
contact with the customer, and reduce the number of people involved with handling the customer
file. Notice that each time the file is send to another person, there is a good probability it will
wait. Service blueprints will differ based on assumptions and level of detail.
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Revised Process:
Closing agent handles all tasks except for preliminary loan approval. Electronic approval and
transmission of information helps speed process. Loans meeting certain criteria are automatically
approved. Attorney performs tasks and verifies closing date. Having a closing date target helps to
coordinate activities. Delays are still possible but with fewer handoffs are reduced considerably.
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Answers to Case Problem 5.2: Herding the Patient
Current process:
Analysis:
Why does the patient register twice?
Can patient pre-register or bring in a hospital card that is scanned?
Can undressing/dressing be performed nearer to the exam room?
Can patient enter hospital nearer to the department?
Can appointment times minimize wait?
Revised process:
Set up two exam rooms back-to-back so that technician can alternate between the two of them
while patients are undressing/dressing. Out-patients can enter diagnostic imaging department
directly without having to go through the hospital. Pre-registration by phone, online, or at
referring Dr’s office reduces check-in time. As estimates of service time become more accurate,
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
appointment scheduling can be tightened, thereby reducing waiting time. The servicescape
should include proper signage describing services and procedures. The rooms should combine a
clinical cleanliness with mirrors, comfortable chairs or benches and places to put clothing. A
screen or curtain for changing is needed.
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Answers to Case Problem 5.3: The Faculty of Business Copy Centre
A multiple-server queuing model must be evaluated for a centre with two copiers and three
copiers for the normal academic year and the summer.
Normal Academic Year

Two Copiers Three Copiers
 7.5  7.5
 5  5
c 2 c 3
W 0.457 hr 27.42 min W 0.232 hr 13.92 min
In an 8-hr day, there are 60 jobs In an 8-hr day, there are 60 jobs
 8 7.5 60   8 7.5 60 
60 jobs 0.457 hr 27.42 hr of 60 jobs 0.232 hr 13.92 hr of total
total secretarial time in the college secretarial time in the college spent on
spent on copying jobs copying jobs
$8.50 hr 27.42 hr $233.07 in $8.50 hr 13.92 hr $118.32 in
secretarial wages spent daily for secretarial wages spent daily for
copying in the college copying in the college
177 days in the normal academic 177 days in the normal academic
year $233.07 year $118.32 $20.942.64 per year
$41, 253.39 per year
Summer Months
Two Copiers Three Copiers
 3.75  3.75
 5  5
c 2 c 3
W 0.233 hr 13.98 min W 0.204 hr 12.24 min
Jobs / day 30 Jobs / day 30
30 jobs 0.233 hr 6.99 hr 30 jobs 0.204 hr 6.12 hr
$8.50 hr 6.99 hr  $59.42 / day $8.50 hr 6.12 hr $52.02
70 days 59.42 $4.159.05 70 days 52.02 $3, 641.40
The current cost of wages for copying is $41, 253.39  4,159.05 $45, 412.44.
The cost with three copiers is $20,942.64  3, 641.40 $24,584.04.
The total annual wage savings by adding a third machine are
$45, 412.44  $24,584.00 $20,828.40 per year.
Since a copying machine costs $36,000 and has maintenance costs of $8,000 per year, the total
cost over the life of the copier will be $84,000 (with no present-value discounting). Over the
same six-year period, adding a third copier would save $124,970.40 in copying wage costs,
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
which outweighs the cost of a new copier.
However, Professor Novakmay still not be able to convince Dr. Nassir. The savings in wages are
not really savings to the college but are a measure of secretarial time that could be reallocated to
other tasks within the departments. The college would not save any money; it would simply incur
the cost of the copier. The departments could argue that other tasks the secretaries might perform
instead of copying would be a more efficient use of $20,828.40 in annual wages, but Dr. Nassir
would probably be hard to convince with this argument.
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Answers to Case Problem 5.4: Northwoods Backpackers
There are four system configurations to be considered, as follows:

1. 5-day, 8-hour per day service
In each case the first step is to determine the number of servers that are required to make the
system feasible, i.e., c   . Remember, the current system has 5 operators (servers), and
 60 / 3.6 16.67 customers per hour.
5-day, 8-hour service:  175,  16.67; c   /  or c  175 /16.67 10.49. Thus, at least 11
total operators are required for this (the current) system to be feasible. Since the current physical
facility can only accommodate a maximum of 10 work stations, this alternative is eliminated.
operators are required for this system to be feasible.
Therefore, only the first configuration (the current one) is not feasible and is eliminated. Next the
costs of the remaining 3 alternatives are evaluated.
7-day, 8-hour service

 125,  16.67
Cost for 7 day service $3, 600
Cost per extra operator $3,800
Recall that at least 8 operators are required for this configuration to be feasible. Thus, starting at
this point we must compute the waiting times for different numbers of operators until the goal of
one-half minute waiting time is achieved.
8 operators: Wq 5.76 minutes

 Probability of waiting 0.18 
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Since 5 extra operators are required to reach the waiting time goal, the cost of this alternative is
$3, 600   5   3,800  $22, 600.

 87.5,  16.67
Cost for 16 hour service $11,500
Cost per extra operator $4, 700
At least 6 operators are required for this configuration to be feasible.
 Probability of waiting 0.21
Since 3 extra operators are required to reach the waiting time goal the cost of this alternative is
$11,500   3  4, 700  $25,600.

 62.5,  16.67
Cost for 16-hour service $11,500
Cost for 7-day service $7, 200
Cost per extra operator $6,300
At least 4 operators are required for this configuration to be feasible, however, since 5 operator
stations already exist, the starting point is 5 operators.
 Probability of waiting 0.10 
Since only 1 extra operator is required to reach the waiting time goal the cost of this alternative is
$11,500  7, 200  1  6,300  $25,000.
The 7-day, 8-hour service configuration has the lowest cost. However, all three alternatives are
very close according to cost. All three also meet the goal of a customer getting immediate service
at least 80 percent of the time. Thus, other factors may be taken into consideration. For example,
both of the 16-hour service alternatives might be more convenient for customers who work
during the day.

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Solutions Manual for Operations Management: Creating Value Along the Supply Chain, Canadian Edition 5- 1

CHAPTER 5 – SERVICE DESIGN

ANSWERS TO QUESTIONS, PROBLEMS, AND CASE PROBLEMS

5-12. a. Hair salon: multiple-server; first-come, first-served or appointment; calling population

5-20. An example is when customers are served according to a prearranged schedule or

5-22. Automated equipment or robots.

       25  25  16.67  1.33 customers waiting

5-4. The arrival rate must be on an hourly basis.

 10 per hour

5-6.  5 per hour

Therefore, a new air traffic controller is not needed.

5-7.  12 per hour

However, the arrival rate for each window is now split.

4.5  1.29 3.21 min reduction in waiting time

5-8.  10 per hour

5-9.  120 per day

8 hr / day 60 min / hr 480 min

9 minutes $10, 000 $90, 000 per year loss presently.

 60 per day per scale

8 hr/day * 60 min/hr * 0.0125 day = 6 minutes

The entire $90,000 would be saved.

5-10. Arrival rate = 120 trucks per hour

P( > = 5) = P( 1 - < = 4) = 0.463

5-11.  10 per hour

The student will probably recommend adding the advisor.

5-12.  0.25 per hour per patient

L Lq   1  P0  0.592   1  0.423 1.168 patients

0.338 hr or 20.27 minutes in system

5-13. Without fax operator:

With fax operator:

Service Waiting Total

5-14.  90 per hour

No, another wrapper is not needed.

5-17.  6.5 per hour

Hire a third doctor.

Thus, two salespeople are not enough.

Three servers should be sufficient.

5-20.  4 per day

If total repair time is 4 days,

5-21. Arrival rate:  40 units per hour

1. Without additional employees:

2. With additional employees:

Thus,  2 66.67 units per hour

In-process inventory number in process and waiting to be processed = L= number in

Without additional employees:

With additional employees:

Decision analysis: The cost of in-process inventory is

Difference $124.00  $46.50 $77.50 / day

c. Alternative 1: Add a fourth loading/unloading location at the dock, yielding four

Computing the effective service rate for each alternative yields:

2       2   13.33  13.33  11 1.94 drivers

5-24.  50 / hr .83/min

2      2  2   3  .83 0.149 people in line

5-27. 7:00 A.M. to 9:00 A.M.:  8

9:00 A.M. to Noon:  4

Noon to 2:00 P.M.:  14

2:00 P.M. to 5:00 P.M.:  8

First, compute the following values needed in the formula calculations:

3 720 / 6 120 1/27 120 / 27 4.444

L Lq   1  P0  2.2  0.94784

The annual cost of machine downtime is 276.27 50 $13,813.50.

savings of $13,813.50  $12, 000 $1,813.50.

5-35. Regular copier High-speed copier