UNIVERSITY OF SINDH JAMSHORO

INSTITUTE OF BUSINESS ADMINISTRATION

TOPIC OPERATION MANAGEMENT
ASSIGNED BY MA’AM PARUS KHAWAJA
FAHAD ALI GHOURI
BBA/2K17/56 Morning

Problem La Villa

Solution: (A) Using Little’s Law

Avg flow rate = Avg inventory / Avg flow time
= 1200 skiers / 10 days
= 120 skiers per day.

Solution (B) Last year: on any given day, 10% (1 of 10) of skiers are on their first day of skiing
This year: on any given day, 20% (1 of 5) of skiers are on their first day of skiing
Average amount spent in local restaurants (per skier)
Last year = 0.1 * $50 + 0.9 * $30 = $32
This year = 0.2 * $50 + 0.8 * $30 = $34
% change = ($34 - $32) / $32 = 6.25% increase.
 Problem Valley Forge Income Tax

Solution: Recall that the demand for the 4 groups is:

1. 15%
2. 5%
3. 50%
4. 30%

There are three resources, the admin, the junior person, and the senior person. We
compute the minutes of capacity they have available every month as well as their workload,
given that there are 50 incoming returns to be processed. This leads to the following
computations.

Resources Minutes per 1 2 3 4 Total Implied

month workload Utilization

Admin 9600 0.15*50 0.05*50 0.5*50 0.3*50 3575 0.372

*(20+50) *(40+80) *(20+30) *(40+60)

Senior 9600 0.15*50 0.05*50 0.5*50 0.3*50 1325 0.138

*(30+20) *(90+60) *(0+5) *(0+30)

Junior 9600 0.15*50 0.05*50 0.5*50 0.3*50 6650 0.693

*120 *300 *80 *200

(A) The junior person is the bottleneck.

(B) Implied Utilization of senior accountant is 0.138.

Implied Utilization of junior accountant is 0.693.
Implied Utilization of administrative support person is 0.372.