Case Problem 2: Office Equipment

961 words 4 pages
Case Problem 2: Office Equipment, Inc. 1. l = 1 llamada/50 hours = 0.02 calls per hour 2. Mean service time = travel time + repair time = 1 + 1.5 = 2.5 hours m = 1 / 2.5 hours = 0.4 customers per hour 3. The travel time is 1 hour. While this is considered part of the service time it actually means that the customer will be waiting during the first hour of the service time. Thus, travel time must be added to the time spent in line as predicted model in order to determine the total customer waiting time. 4. Using output from The Management Scientist, we have the following: Probability that no customers are in the system 0.5380 Average number of customers waiting …show more content…
This is the average time for the service technician to complete all previous service call commitments and be ready to travel to the new customer. Since the average travel time is 1-hour for the service technician to reach the new customer's office, the total customer waiting time is 0.5581 + 1 = 1.5581 hours. Thus, two technicians are needed to meet the company's 3-hour service guideline when the company reaches 20 customers. The total cost is $275.27 per hour. 6. A comparison of two and three technicians with 30 customers shows that the average total waiting time with two technicians will be 2.6895 hours and the average total waiting time with three technicians will be 1.2626 hours. The hourly cost with two technicians is $391.94 and the hourly cost with three technicians is $397.08. While three technicians provide a smaller waiting time, two technicians are able to meet the 3-hour service guideline for a total lower cost. Thus, the company should continue to use two technicians when the customer base expands to 30 customers. Using output from The Management Scientist, two service technicians provide the following: Probability that no customers are in the system 0.1760 Average number of customers in the waiting line 0.9353 Average number of customers in

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