Due on July 11,11

Homework # 5
206513 Applied Quantitative Sciences in Industrial Engineering

Pornpunsa Wuttisanwattana
1. Textbook 13.12 For the queueing problem 13.8, assume that on average a buy/sell signal is generated every 8 min and that there are two financial analyst. Each analyst is capable of making an evaluation in about 12 min. Compute all the performance measures listed in table 13.2 by hand, and interpret those values in the context of the problem ( Compute only the probabilities of 0,1,2 customer being in the system.)
Data = 1/12= = 1/8= 0.13 0.08 signal/min signal/min 2 servers

Table 13.2 Probability that no customers are in system, P0 Average Numbers in the line, Lq Average waiting time in the queue, Wq Average waiting time in the system, W Average numbers in the system, L Probability that an arriving Customer has to wait Probability of n customers ( n<=c) in the system Probability of n customers ( n > c) in the system Utility

P ( n = 0) = 0.14 1.93 signal 15.43 Min 27.43 Min 3.43 signal 0.64 P(n<=2) =0.1607+0.2143+0.1429 P(n > 2) = 0.48 75 %

0.52

2. Textbook -- 13.14 Use your computer to answer the following sensitivity questions for the problem of 13.12 a.) On average, how much additional time can each analyst take before more than 1 hour elapses on avaerage from the time a buy/sell signal is generated until he or she makes a final decision

= So 1 signal have Ans

0.07

Signal/min 14.01 Min 2.0056 min more for each signal

The analyst will have 14- 12 min =

b.) On average, how many signals per hour can arrive before there is an average of three of them waiting to be analyzed (Lq)

When Lq is 3 , Ans = 19.36 Signal/min

On average , there is

1161.78 Signal/hour

c.) How many analysts are needed to ensure that, on average, no more than 15 min(W) elapse from the time a buy/sell signal is generated until an analyst makes a final decision 2C QUEUE 2 : M / M / c QUEUE STATISTICS Number of identical servers . . . . . . . . . 2 Mean arrival rate . . . . . . . . . . . . . . 0.1250 Mean service rate per server . . . . . . . . 0.0833 Mean server utilization (%) . . . . . . . . . 75.0000 Expected number of customers in queue . . . . 1.9286 Expected number of customers in system . . . 3.4286 Probability that a customer must wait . . . . 0.6429 Expected time in the queue . . . . . . . . . 15.4286 Expected time in the system . . . . . . . . . 27.4286 2C QUEUE 3 : M / M / c QUEUE STATISTICS Number of identical servers . . . . . . . . . 3 Mean arrival rate . . . . . . . . . . . . . . 0.1250 Mean service rate per server . . . . . . . . 0.0833 Mean server utilization (%) . . . . . . . . . 50.0000 Expected number of customers in queue . . . . 0.2368 Expected number of customers in system . . . 1.7368 Probability that a customer must wait . . . . 0.2368 Expected time in the queue . . . . . . . . . 1.8947 Expected time in the system . . . . . . . . . 13.8947 2C QUEUE 4 : M / M / c QUEUE STATISTICS Number of identical servers . . . . . . . . . 4 Mean arrival rate . . . . . . . . . . . . . . 0.1250 Mean service rate per server . . . . . . . . 0.0833 Mean server utilization (%) . . . . . . . . . 37.5000 Expected number of customers in queue . . . . 0.0448 Expected number of customers in system . . . 1.5448 Probability that a customer must wait . . . . 0.0746 Expected time in the queue . . . . . . . . . 0.3580 Expected time in the system . . . . . . . . . 12.3580 Ans From STROM result the number of analyst should be at least 3

3. Textbook - 13.16 The PayFast supermarket currently had four cashiers, The company wants to upgrade its service either by hiring and additional cashier or by putting in bar-cosde scanners at each checkout. Historical data indicate that (a) customers arrive according to a Poisson process at the average rate of 45 per hour () ( Arrival Process) (b) the amount of time a chashier needs to handle a customer follows an exponential distribution with an average rate of 15 customers per hour. () (Service Process) - Barcode equipment would increasing efficiency by 20%. - "cost" of a waiting customer should be valued at $30 per hour (Cw) that the hourly cost of a cashier is $15 (C) , including benefits. However, to cover the cost of the bar-code equipment, the hourly rate of cashier should be increased to $18. Determine wheather the company should hire an additional cashier or install the bar code equipment at the existing check-outs. (Assume that customers form a single queue when checking out) For each of the two system you evaluated , specify the value of c,, ,cw,cs and the total cost unit of time

From STORM

Value to measure C Cw Cs Total cost unit of time Ans

Bar Code 4 45 18 30 18 162.98 Cashiers Customer/hr Customer/hr $/hr $/hr $/hr

Additional Cashier 5 Cashiers 45 Customer/hr 15 Customer/hr 30 15 175.61 $/hr $/hr $/hr

Therefore, the company should decide to install the bar code system as its total cost is lower

4. Textbook -- 13.20 From 13.5 . When the population is considered infinite, the optimal number of repair persons is 9, there are an average of 25 jammed machines per hour (=25 machine/hr), each repair person costs the company a total of $50 per hour (Cs) and needs 15 min to fix a jammed machine(=60/15 machine/hr), and the opportunity cost of a jammed machine is $100 per hour (Cw). Use your computer package to determine on average how many jams per hour ( to the nearest whole number) the system could have before it is more economical to have 10 repair persons.

Value to measure C Cw Cs Ans

9 25 4 100 50

Currently repair person Machine/hr Machine/hr $/hr $/hr

at 10 repair person 10 repair person 27 Machine/hr 4 Machine/hr 100 50 $/hr $/hr 27 Machine/hr

From Trial-Error in STORM Having 10 repair person is economic when the arrival rate is

5. Textbook -- 13.22 For the conditions of 13.20, the accounting dept is not very confident of the estimae of$100 per hour for the opportunity cost of a jammed machine. In fact, the dept. head says that the estimate may be off by as much as $25 in either direction. Use your computer to determine if management needs to be concerened about this estimate in deciding the number of repair persons that should be hired. Discuss. Ans This estimated cost is applied to both current condition and the condition of having 10 repair person. Therfore, the number of repair person is depent on arrival rate () and service rate (). So the management does not need to concern about this estimated cost

6. Textbook -- 13.26 Recall 13.16 that is modeled as an M/M/4 queueing system in which an avaerage of 45 customers per hour () arrive at the check-out lines and each of the four cashiers can handle an average of 18 customer per hour () when the bar-code scanners are installed. Consider modeling this same problem as four seperate M/M/1 queueing systems, one for each cashier. Assume that customers are equally likely to choose any one of the four lines and do not switch lines. What is an appropriate arrival rate for each of the M/M/1 systems?

M/M/1

= = =

of M/M/4 / 4 45/4 11.25

7. Textbook -- 13.27 From 13.26, compare the average number of customers in the entire checkout area using both the M/M/4 and the four M/M/1 systems. How do you explain the difference? For M/M/1 L = 1.67 6.67

for 4 line 4*1.6667 = For M/M/4 L = 3.03

So, MM1 is ore effective

omers hour ing

h the