For the next 6
questions: no credit unless work is shown; give answers to at least 3 decimal
places.

1.
Undergraduate advising at a large
university is available on a walk-in basis. All students first register at the
check-in desk. Then each waits until an advisor is available. The process
diagram is shown below. The check-in activity takes, on average, 3 minutes per
student. On average there are 2 students waiting to check in. Advising takes an average of 20 minutes. On
average, there are 10 students waiting to see an advisor. Lines can be long so
some students leave before checking. Currently, 60 students per hour arrive for
advising, however, 20% of them decide to leave before checking in. The process
is stable.

Check-in Advising

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a.
(04 points) What is the average
number of students talking with advisors?

b.
(04 points) What is the average
number of students in the process?

c.
(02 points) What is the average
flow time of students in the process?

2.
Kid Time Toy Company currently
produces 4,800 Jane Austen action dolls per month. Dolls are processed through three operations.
Dolls start in operation A, once completed they are moved to operation B, and
then to operation C. Direct labor
workers are paid $12/hour and work 8-hours per day, 20 days per month. Information about the number of workers, direct
labor content and work-in-process (WIP) is given below. Assume the plant has
been in operation for several months (i.e. ignore start-up conditions)

Operation Direct Labor Content Number of workers Average WIP (# of dolls)
(minutes per doll) at operation at operation
A 3.0 2 40
B 8.0 6 120
C 5.0 3 60

a.
(03 points) What is the
theoretical capacity in dolls per hour of each operation?

b.
(02 points) What is the
theoretical capacity of the process? Justify your answer.

c.
(04 points) What is the capacity
utilization of the process?

d.
(02 points) What is the average
flow time in minutes for a doll?

e.
(03 points) What is the direct
labor cost per doll?

3.
In measuring and evaluating the
quality of banking services, analysts have found that customers regard accuracy
as one of the most important characteristics. First Chicago Bank tracks
accuracy by counting the number of transactions rejected (i.e. have at least
one error). Over a 5 week period, First Chicago collected samples of 1000
transactions for each of 5 weeks as baseline data and recorded the number of
rejected transactions. The results are below.

Week Number of transactions rejected
1 11
2 08
3 12
4 06
5 13
Total = 50

a.
(05 points) Find the 3-sigma
control limits and centerline for a p-chart using the baseline data above.

b.
(02 points) If the results for
week 6 show 18 out of 1000 transactions were rejected, what would be your
interpretation of this result? Would you take any actions or not and why?

c.
(02 points) If the results for week 6 show 3 out of 1000
transactions were rejected, what would be your interpretation of this result?
Would you take any actions or not and why?

4.
The Bank of Banks
in Banks, Georgia, is thinking about re?designing its drive?in window facility
after getting complaints about long waits. It is estimated that customers
arrive at an average rate of 24 per hour. The average transaction time is 4
minutes. Inter-arrival times and transactions times are exponentially
distributed.
(a) (06 points)
Currently, there are 2 tellers. Each teller has his/her own lane for cars to
wait. Assume that demand is equally divided between the tellers and no lane
changing is permitted. On average, how
many minutes would a customer wait in line before being served?
(b) (06 points) Suppose the bank could locate
both tellers inside the bank building and have both tellers work both lanes.
The next available teller serves the customer who has been waiting the
longest. On average, how many minutes
would a customer wait in line before being served?

5. A computer company sells an average of 400
units per week of a popular model to distributors for
$1,250 per unit, giving it a profit margin of
20%. The company currently produces
four-weeks supply

per batch, with a setup cost of $2,093.75 per batch. Assume that their cost of capital is 20% per
year

and that there are 50 weeks per year.

(a) (05 points) Determine the total annual cost
of production and inventory for their current policy.
(b) (05 points) Determine the total annual cost
of production and inventory for an economic order
size policy.

6.
Mass PC Inc produces a 4-week supply of its PC Pal model when stock on
hand drops to 500 units. It

takes one week to produce a batch.
Demand averages 400 units per week with a standard deviation of

125 units per week.

(a)
(04 points) What cycle service
level is Mass PC providing its customers?
(b)
(06 points) Mass PC wants to
consider improving its cycle service level to
90%, 95%, and
99%;what would be the resultant impact of each of these on their reorder
policy? For the next 6
questions: no credit unless work is shown; give answers to at least 3 decimal
places.1.
Undergraduate advising at a large
university is available on a walk-in basis. All students first register at the
check-in desk. Then each waits until an advisor is available. The process
diagram is shown below. The check-in activity takes, on average, 3 minutes per
student. On average there are 2 students waiting to check in. Advising takes an average of 20 minutes. On
average, there are 10 students waiting to see an advisor. Lines can be long so
some students leave before checking. Currently, 60 students per hour arrive for
advising, however, 20% of them decide to leave before checking in. The process
is stable. Check-in Advising
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a.
(04 points) What is the average
number of students talking with advisors? b.
(04 points) What is the average
number of students in the process? c.
(02 points) What is the average
flow time of students in the process? 2.
Kid Time Toy Company currently
produces 4,800 Jane Austen action dolls per month. Dolls are processed through three operations.
Dolls start in operation A, once completed they are moved to operation B, and
then to operation C. Direct labor
workers are paid $12/hour and work 8-hours per day, 20 days per month. Information about the number of workers, direct
labor content and work-in-process (WIP) is given below. Assume the plant has
been in operation for several months (i.e. ignore start-up conditions)Operation Direct Labor Content Number of workers Average WIP (# of dolls) (minutes per doll) at operation at operation A 3.0 2 40 B 8.0 6 120 C 5.0 3 60 a.
(03 points) What is the
theoretical capacity in dolls per hour of each operation? b.
(02 points) What is the
theoretical capacity of the process? Justify your answer. c.
(04 points) What is the capacity
utilization of the process? d.
(02 points) What is the average
flow time in minutes for a doll? e.
(03 points) What is the direct
labor cost per doll? 3.
In measuring and evaluating the
quality of banking services, analysts have found that customers regard accuracy
as one of the most important characteristics. First Chicago Bank tracks
accuracy by counting the number of transactions rejected (i.e. have at least
one error). Over a 5 week period, First Chicago collected samples of 1000
transactions for each of 5 weeks as baseline data and recorded the number of
rejected transactions. The results are below. Week Number of transactions rejected1 11 2 08 3 12 4 06 5 13 Total = 50a.
(05 points) Find the 3-sigma
control limits and centerline for a p-chart using the baseline data above.b.
(02 points) If the results for
week 6 show 18 out of 1000 transactions were rejected, what would be your
interpretation of this result? Would you take any actions or not and why? c.
(02 points) If the results for week 6 show 3 out of 1000
transactions were rejected, what would be your interpretation of this result?
Would you take any actions or not and why?4.
The Bank of Banks
in Banks, Georgia, is thinking about re?designing its drive?in window facility
after getting complaints about long waits. It is estimated that customers
arrive at an average rate of 24 per hour. The average transaction time is 4
minutes. Inter-arrival times and transactions times are exponentially
distributed. (a) (06 points)
Currently, there are 2 tellers. Each teller has his/her own lane for cars to
wait. Assume that demand is equally divided between the tellers and no lane
changing is permitted. On average, how
many minutes would a customer wait in line before being served? (b) (06 points) Suppose the bank could locate
both tellers inside the bank building and have both tellers work both lanes.
The next available teller serves the customer who has been waiting the
longest. On average, how many minutes
would a customer wait in line before being served?5. A computer company sells an average of 400
units per week of a popular model to distributors for $1,250 per unit, giving it a profit margin of
20%. The company currently produces
four-weeks supply
per batch, with a setup cost of $2,093.75 per batch. Assume that their cost of capital is 20% per
year
and that there are 50 weeks per year.
(a) (05 points) Determine the total annual cost
of production and inventory for their current policy. (b) (05 points) Determine the total annual cost
of production and inventory for an economic order size policy.6.
Mass PC Inc produces a 4-week supply of its PC Pal model when stock on
hand drops to 500 units. It
takes one week to produce a batch.
Demand averages 400 units per week with a standard deviation of
125 units per week.(a)
(04 points) What cycle service
level is Mass PC providing its customers?(b)
(06 points) Mass PC wants to
consider improving its cycle service level to90%, 95%, and
99%;what would be the resultant impact of each of these on their reorder
policy?