Operation Research 2

Operation research in SCM

delivery time vs.
pack up stock

Queuing
Q
g Models

restricted- vs. fully

range of facilities

transportation
suppliers

plants

economical
delivery size

Purchasedecisions

stock vs.
customer service

planned delivery
time vs. safety
stock

transportation
warehouses

capacity vs.
vs
stocksize

Productiondecisions

retail trade
distribution
structure

Storagedecisions

consumers
customer service
vs. delivery time

DistributionSCM
decisions

Emergency Room Layout

E.R.Triage
E
R Triage
room

Patient A broken leg

Patient B - erratic
pacemaker

Laboratories

E.R. beds

Pharmacy

Billing/exit
3

Work Cell Floor Plan

Saws

Drills

Tool Room

Production system
Office

Work Cell

Waiting Line Examples

Situation
Bank

Arrivals

Customers

Doctor s
Doctors
office

Patient

Traffic
intersection

Cars

Servers
Teller

Doctor

Waiting Lines / Queue

Service Process
Deposit etc.

Treatment

Light

Assembly line Parts

Workers

Tool crib

Clerks

Workers

Controlled
passage
Assembly
Check out/in tools

Fi studied
First
di d by
b A.
A K.
K Erlang
El
in
i 1913
Body of knowledge called queuing theory

Analyzed telephone facilities

Queue is another name for waiting
Q
g line

Decision problem

Balance cost of providing good service with

cost of customers waiting

Deciding on the Optimum Level of Serv

Waiting Line Cost Analysis

Cost

Total expected cost

Minimum
total cost

a
b
c
d
e
f
g

Cost of pprovidingg
service

Average number of ships arriving per shift

A
Average
ti
time each
h ship
hi waits
it to
t be
b unloaded
l d d (hours)
(h
)
Total ship hours lost per shift (a x b)
Estimated cost per hours of idle ship time
Value of ship's lost time or waiting cost (c x d)
PT X team
t
salary,*
l
* or service
i costt
Total expected cost (e x f)

Number
1
5
7
35
$1,000
$35,000
$6 000
$6,000
$41,000

of team of PT X's working

2
3
4
5
5
5
4
3
2
20
15
10
$1,000
$1,000
$1,000
$20,000 $15,000 $10,000
$12 000 $18,000
$12,000
$18 000 $24,000
$24 000
$32,000 $33,000 $34,000

Negative Cost of waiting

time to company
Team = 50, 12 hours/day, $10/hours

Low level
of service

Optimal
p
service level

High
g level
of service

Optimal Cost
9

Three Parts of a Queuing System

at Car
Car-Wash
Wash

Waiting Line Terminology

10

Queue: Waiting
Q
W iti line
li
Arrival: 1 person, machine, part, etc. that
arrives and demands service
Queue discipline:
Q
p
Rules for determining
g
the order that arrivals receive service
Channel: Number of waiting lines
Phase: Number of steps in service
11

12

Characteristics of a
Waiting Line System

0.30

0 30
0.30

0.25

0.25

0.20

0.20

0.15

Probability

0.10
0 05
0.05
0.00

0.15
0.10
0.05

6
x

9 10 11 12

0.00

=2

6
x

13

Number

X
0

P(X)

= 6.0

10

X
6

.6
.3
.0

Waiting Line
Characteristics
Ch
t i ti

Service Facility
Ch
Characteristics
t i ti

Arrival rate distribution

Poisson
Other

Length of the queue

limited
unlimited

Number of channels
single
multiple

Pattern of arrivals
random
scheduled

Service priority
FIFO
other

Number of phases in service

system
single
multiple
Service time distribution
negative exponential
other

Behavior of the arrivals

join the queue, and wait until
served
balk; refuse to joint the line
renege; leave the line

time, &
time between arrivals
Example: Service time
is 20 min.
Mean service rate =
e.g., customers/hr.
t
/h
Mean service time = 1/
Equation:

14

Service

= 0.5

P(X)

- x

e
P( X = x | ) =
x!

.6
.3
.0

of events that
occur in an interval of
time
Example: Number of
customers that arrive
i 15 min.
in
i
Mean = (e.g., 5/hr.)
Probability:

Arrival
Characteristics
Ch
t i ti

Size of the source population

limited
unlimited

9 10 11 12

=4

Probability

Poisson Distributions for

Arrival Times

f (t | ) = e t

.8
.4
.0

t
0

.8
.4
.0

= 0.8

f(t)

= 0.4

f(t)

t
0

S g e C a e , Single-Phase
Single-Channel,
S g e ase
System
Service system

Arrivals

Ships at
sea

Queue

Service
facility

Ship unloading system

Waitingg ship
p line

S g e C a e , Multi-Phase
Single-Channel,
ut
ase
System
Service system
y

Served
units

Arrivals

Empty
ships
p

Cars
in area

Queue

Waiting cars
Pay

Multi-Channel,
u t C a e , Single
S g e Phase
ase
System
A i l
Arrivals

Queue

Service
f ilit
facility
Service
facility

Example: Bank customers wait in single line

for one of several tellers.
tellers

Service
f ilit
facility

McDonalds drive-through

Dock

Service system
y

Service
f ilit
facility

Served
units

Cars
& food

Pickup

Multi-Channel,
u t C a e , Multi-Phase
ut
ase
System
Service system
y

Served
units
A i l
Arrivals

Queue

Service
f ilit
facility

Service
f ilit
facility

Service
facility

Service
facility

Served
units

Example: At a laundromat, customers use one of

several washers,
washers then one of several dryers.
dryers

Waiting-Line Performance
Measures

Average queue time

time, Wq
Average queue length, Lq
Average time in system, Ws
Average
g number in system,
y
Ls
Probability of idle service facility, P0
System utilization,
utilization
Probability of k units in system, Pn > k

Assumptions
ssu pt o s o
of tthe
e Basic
as c
Queuing Model

Simple (M/M/1) Model

Characteristics

Types of Queuing Models

Simple (M/M/1)
Example:

M lti h
Multi-channel
l (M/M/S)
Example:

Airline ticket counter

Constant Service (M/D/1)

Example:

Information booth at mall

Automated car wash

Limited Population
Example:

Department with only 7 drills

arrivals
i l are served
d on a first
fi
come, fi
first served
d
basis
arrivals are independent
p
of p
preceding
g arrivals
arrival rates are described by the Poisson
probability distribution, and customers come
from a very large population
service times vary from one customer to another,
and are independent of one and other; the average
service time is known
service times are described by the exponential
probability distribution
the service rate is greater than the arrival rate

T
Type:
Single-channel,
Si l h
l single-phase
i l h
system
t

Input source: Infinite; no balks, no reneging

Arrival distribution: Poisson

Queue: Unlimited; single line

Queue discipline: FIFO (FCFS)

Service distribution: exponential

Relationship: Independent service & arrival

Service rate > arrival rate

S p e ((M/M/1)
Simple
/ / ) Probability
obab ty
Equations

Simple (M/M/1) Model Equations

Eq ations
Average number of
units in sistem
Average time in
system
Average number of units
in queue

Average
ve age ttimee in queue
System
y
utilization

Ls =

Probability of 0 units in system, i.e., system idle:

1
Ws =
-
Lq =

P = 1- = 10

Probabilityy of more than k units in system:

y

( - )

Wq =
( - )

Pn>k=

Multichannel (M/M/S) Model

Characteristics

Total hourly service cost = mCs

m = number of channels
Cs= service cost (labor cost) of each channel

Total waiting cost per time period =

(Wq)Cw
T t l costt = mC
Total
Cs + (Wq)Cw

()

Where n is the number of units in the system

The costs of a queuing system

k+1

Type: Multichannel system

Input source: Infinite; no balks, no reneging
Arrival distribution: Poisson
Queue: Unlimited; multiple lines
Q
Queue
discipline:
di i li
FIFO
O (FCFS)
( C S)
Service distribution: Negative exponential
Relationship: Independent service & arrival
Service rates > arrival rate

Model B (M/M/S) Equations

1

Probability of zero
people or units in the
y
system:

P0 =

Average number of
people
l or units
it in
i the
th
system:

Ls =
P0
(M 1)! (M )

Average time a unit

spends in the system:

Ws =
P0 +
2

(M 1 )! (M )

M 1 1 n 1 M M
+

n =0 n! M! M

Constant Service Rate (M/D/1)

Model Characteristics

Type: Single-channel, single-phase system

Input source: Infinite; no balks, no reneging
Arrival distribution: Poisson
Queue: Unlimited; single line
Q
Queue
discipline:
di i li
FIFO
O (FCFS)
( C S)
Service distribution: Negative exponential
Relationship: Independent service & arrival
Service rates > arrival rate

Model B (M/M/S) Equations

Average number of
people or units waiting
for service:

Lq = Ls

Average time a person

p
in the
or unit spends
queue

Wq = Ws

Model C (M/D/1) Equations

Average number of people or
units waiting for service:

Lq =

2
2 ( )

Average time
A
ti a person or unitit
spends in the queue

Wq =

2 ( )

Average number
A
b off people
l or
units in the system:

Ls = Lq +

Average time a unit spends in

the system:

Ws = W q +