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Tom Cheat Sheet Midterm 1

In: Business and Management

Submitted By aesardjono
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Dimensions of Service Quality – (Convenience, Reliability, Accuracy, Time, Responsiveness, Courtesy, Tangibles)
Pull System = Demand impacts when product is produced Push System = Demand does NOT impact when product is produced
Quantifying Queues – Queues are inevitable because there will always be variability, it is important how you manage them
- (μ) – Service Rate - Average number of customers that a service provider can serve per unit of time
- (λ) – Arrival Rate - Average number of customers arriving per unit of time
- (ρ) – Utilization Rate - If arrival rate < average service rate, Utilization Rate = Arrival Rate/Service Rate (ρ = λ/ μ)
- If arrival rate > average service rate, utilization is > 100% Average # of Customers in System (L) = Arrival Rate/(Service Rate – Arrival Rate) & L = λ / (μ – λ) Average # Waiting in Line (Lq) = (Utilization Rate)*(Avg. # of Customer in System) & Lq = ρ L Average Customer Time Spent in System (W) = 1 / (Service Rate – Arrival Rate) & W = 1/(μ- λ) Average Waiting Time (Wq) = Utilization Rate * Average Customer Time Spent in System & Wq = ρ W Increase in… | Output | Waiting Customers (Inv.) | Business Impact? | Service Rate | UP | DOWN | Positive | Arrival Rate | UP | UP | Trade-Off | Waiting Room Size | UP | UP | Trade-Off | Variability | DOWN | UP | Negative | # Of Servers | UP | DOWN | Positive | -------------------------------------------------
Sources of Variability (For Service Operations)
-------------------------------------------------
- Variability in Inter-Arrival Times (arrival rate)
-------------------------------------------------
- Variability in Processing Times (service rate)
-------------------------------------------------
High Variability + High Utilization = WIPTPT
-------------------------------------------------…...

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