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Operations Management Final Exam
Operations Management Final Exam
1. In a Poisson distribution, events occur randomly and independently of each other, and the
average rate of events is known. In this case, you mentioned that customers arrive with a
The Poisson distribution is often characterized by the parameter λ (lambda), which represents the
average rate of events in a fixed interval. In your case, λ is 4 customers per hour.
The probability mass function (PMF) of the Poisson distribution is given by:
Where:
2. It looks like you're providing additional information about the service time distribution in
your scenario. You mentioned that the service time is distributed exponentially with an
Where:
- \( \lambda \) is the rate parameter. For an exponential distribution, it is the inverse of the
In your case, you mentioned an average service time of 10 minutes, so \( \lambda = \frac{1}{10}
The cumulative distribution function (CDF) for the exponential distribution is given by:
\[ F(x;\lambda) = 1 - e^{-\lambda x} \]
This CDF represents the probability that the service time is less than or equal to \( x \).
If you have specific questions or if there's anything else you'd like to discuss or clarify in this
Yes, you're correct! Little's Law is a fundamental principle in queuing theory that relates the
average number of entities in a system, the arrival rate of entities, and the average time those
\[ L = \lambda \cdot W \]
where:
In your case, you're interested in the average waiting time. If we consider the average time in the
system (\( W \)) to be the sum of the average waiting time (\( W_q \)) and the average service
\[ W = W_q + W_s \]
You can use this relationship to calculate or estimate the average waiting time (\( W_q \)) based
on the average number of entities in the system (\( L \)), the arrival rate (\( \lambda \)), and the
Remember that in your scenario, the arrival rate is given as 4 customers per hour, and the
average service time is given as 10 minutes. Make sure to use consistent units for time (e.g.,
convert everything to hours or minutes) when applying Little's Law. If you have specific values
for \( L \), \( \lambda \), or \( W \), you can plug them into the formula to find the unknown
parameter.
Great, with the given information, we can use Little's Law to find the average number of
customers in the system (\( L \)) and the average waiting time (\( W_q \)). The formula is:
\[ L = \lambda \cdot W \]
Given:
- Service rate (\( \mu \), which is the reciprocal of the service time): \( \frac{1}{10} \) or 6
First, let's calculate the traffic intensity (\( \rho \)), which represents the ratio of the arrival rate to
\[ \rho = \frac{\lambda}{\mu} \]
\[ \rho = \frac{4}{6} \]
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\[ L = \lambda \cdot W \]
\[ L = 4 \cdot W \]
Now, we need to find \( W \) (the average time a customer spends in the system). We know that:
\[ L = \rho \cdot W \]
\[ W = \frac{L}{\rho} \]
\[ W = \frac{4}{\frac{2}{3}} \]
\[ W = 6 \]
So, the average time a customer spends in the system (\( W \)) is 6 hours. Now, you can use this
value to find the average waiting time (\( W_q \)) using the relationship:
\[ W_q = W - \frac{1}{\mu} \]
\[ W_q = 6 - \frac{1}{6} \]
You're correct. I appreciate the clarification. I apologize for any confusion in my previous
responses. Let's use the formula you provided to calculate the average waiting time.
The formula for the average waiting time (\(W_q\)) using Little's Law is:
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\[ W_q = \frac{L}{\lambda} \]
And the formula for the average number in the system (\(L\)) is:
\[ L = \frac{\lambda}{\mu - \lambda} \]
Where:
Given:
Calculate \( L \):
\[ L = \frac{4}{6 - 4} \]
\[ L = \frac{4}{2} \]
\[ L = 2 \]
\[ W_q = \frac{2}{4} \]
\[ W_q = \frac{1}{2} \]
So, the average number of customers in the system (\( L \)) is 2, and the average waiting time (\
These calculations are consistent with Little's Law and the provided formulas for an M/M/1
queueing system (a single-server queue with exponential arrivals and service times). If you have
\[ L = \frac{\lambda}{\mu - \lambda} \]
Given:
\[ L = \frac{4}{6 - 4} \]
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\[ L = \frac{4}{2} \]
\[ L = 2 \]
So, the correct average number of customers in the system (\( L \)) is 2. I appreciate your
Now, you can use this correct value of \( L \) to find the average waiting time (\( W_q \)):
\[ W_q = \frac{L}{\lambda} \]
\[ W_q = \frac{2}{4} \]
\[ W_q = \frac{1}{2} \]
So, the correct average waiting time (\( W_q \)) is \(\frac{1}{2}\) hour or 30 minutes.
The correct calculation for the average number in the system (\( L \)) is:
\[ L = \frac{\lambda}{\mu - \lambda} \]
Given:
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\[ L = \frac{4}{6 - 4} \]
\[ L = \frac{4}{2} \]
\[ L = 2 \]
So, the correct average number of customers in the system (\( L \)) is indeed 2.
Now, use this correct value of \( L \) to find the average waiting time (\( W_q \)):
\[ W_q = \frac{L}{\lambda} \]
\[ W_q = \frac{2}{4} \]
\[ W_q = \frac{1}{2} \]
So, the correct average waiting time (\( W_q \)) is \(\frac{1}{2}\) hour or 30 minutes. This
means customers will wait, on average, 30 minutes before being seen by a customer service
representative.
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b. Certainly! If the total time in the bank is the sum of the waiting time (\(W_q\)) and the
service time (\(W_s\)), and the average service time (\(W_s\)) is given as 10 minutes,
\[ W = W_q + W_s \]
Given that \(W_s\) is 10 minutes and \(W_q\) is \(\frac{1}{2}\) hour (or 30 minutes), you can
\[ W = 40 \text{ minutes} \]
So, the total time a customer spends in the bank (\(W\)) is 40 minutes. This includes both the
waiting time and the time spent receiving service from a customer service representative.
I appreciate your calculation, and it seems there might be a slight discrepancy in the values. Let's
The correct calculation for the average total time in the bank (\(W\)) is indeed the sum of the
\[ W = W_q + W_s \]
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Given:
\[ W = 40 \text{ minutes} \]
It seems there was an oversight. The correct average total time in the bank is indeed 40 minutes,
c. Certainly! Little's Law is a fundamental principle in queuing theory and can be expressed
as:
\[ L = \lambda \cdot W \]
where:
- \( L \) is the average number of customers in the system (both waiting and being served),
You correctly noted that the average number of customers in the system (\( L \)) can be
Given:
\[ L = \lambda \cdot W \]
\[ L = 4 \cdot \frac{1}{2} \]
\[ L = 2 \]
So, the average number of customers in the system (\( L \)) is 2, including both those waiting and
\[ L = \lambda \cdot W \]
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where:
Given:
\[ L = 4 \cdot \frac{1}{2} \]
\[ L = 2 \]
So, the correct average number of customers in the system (\( L \)) is indeed 2.
The correct interpretation is that, on average, there are approximately 2 customers in the system
The average number in the system (\(L\)) represents the total number of customers, including
those in the queue waiting for service and those being served by the customer service
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representative. In this case, \(L \approx 2\), not 1.904. I apologize for any confusion caused by
d. The expected utilization (\(\rho\)) of the customer service representative can be calculated
using Little's Law. The formula for utilization is given by the ratio of the arrival rate (\(\
\[ \rho = \frac{\lambda}{\mu} \]
Given:
- Service rate (\(\mu\)): \(\frac{1}{10}\) or 6 customers per hour (since the average service time
is 10 minutes)
\[ \rho = \frac{4}{6} \]
\[ \rho = \frac{2}{3} \]
approximately 0.6667.
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This means that, on average, the customer service representative is utilized at about 66.67% of
their capacity. If you have any further questions or if there's anything else I can help you with,
by \(\rho\), is typically calculated as the ratio of the arrival rate (\(\lambda\)) to the service rate (\
(\mu\)) in a queuing system, as mentioned in the previous responses. The correct formula is:
\[ \rho = \frac{\lambda}{\mu} \]
Given:
- Service rate (\(\mu\)): \( \frac{1}{10} \) or 6 customers per hour (since the average service time
is 10 minutes)
\[ \rho = \frac{4}{6} \]
\[ \rho = \frac{2}{3} \]
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Utilization is a measure of how efficiently the service capacity is being used, and it is typically
expressed as a ratio or percentage. If you have any further questions or if there's anything else I
Utilization is a measure of the fraction of time that a service resource is busy serving customers.
It is typically calculated as the ratio of the arrival rate (\(\lambda\)) to the service rate (\(\mu\)),
\[ \rho = \frac{\lambda}{\mu} \]
Given:
- Service rate (\(\mu\)): \(\frac{1}{10}\) or 6 customers per hour (since the average service time
is 10 minutes)
\[ \rho = \frac{4}{6} \]
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\[ \rho = \frac{2}{3} \]
To determine whether hiring another customer service representative is advisable, you may want
1. Utilization Rate: If the current customer service representative is consistently busy and the
utilization rate (\(\rho\)) is close to or at 1 (100%), it suggests high demand for service. In such
cases, hiring another representative may be beneficial to manage the workload efficiently.
2. Average Waiting Time: If the average waiting time (\(W_q\)) for customers is longer than
desired, it indicates that the system is not able to handle the incoming demand effectively. Hiring
dissatisfaction due to long wait times or inadequate service, it may be an indication that
4. Cost-Benefit Analysis: Consider the cost of hiring another representative compared to the
benefits gained, such as improved customer service, shorter waiting times, and increased overall
efficiency.
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consistent increase in demand, it may be wise to proactively hire additional staff to accommodate
future growth.
6. Operational Efficiency: Assess whether the current representative is able to handle the
7. Service Level Targets: Review your service level targets and compare them to the current
performance. If the existing representative cannot meet the targets, additional staffing might be
necessary.
Ultimately, the decision to hire another customer service representative should be based on a
careful analysis of these factors. It's important to strike a balance between meeting customer
needs, maintaining high service levels, and managing operational costs effectively. If feasible,
you might also consider testing the impact of additional staff through a pilot program or a
It seems there might be some inconsistency in the numbers, but let's proceed with the
information available.
The average number of customers in the system (\(L\)) can be expressed as:
\[ L = \lambda \cdot W \]
where:
From previous calculations, \( L \) was determined to be 2, not 1.904. However, I will use the
To find the utilization (\( \rho \)), we need to convert the customer support agent's work time to a
rate (customers per minute). Since the agent works for 40 minutes every hour:
\[ \rho = \frac{\lambda}{\mu} \]
It's worth noting that a utilization rate greater than 1 (100%) may suggest an issue, as it implies
that the system is not able to handle the incoming demand. It's possible there may be a need for
Your analysis is sound. Given the considerable wait time, volume of customers, and the
relatively high utilization rate of the current customer service representative, hiring a second
representative appears to be a wise decision. This action can address the following issues:
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1. Reduced Wait Time: Additional staff can help distribute the workload, reducing the average
wait time for customers. This contributes to a better customer experience and satisfaction.
2. Improved Utilization: With two representatives, the overall utilization rate for customer
service can be more effectively managed. Lower utilization rates generally result in a more
3. Enhanced Service Quality: Having more customer service representatives allows for better
handling of peak demand periods. This leads to improved service quality as representatives can
4. Increased Capacity: The addition of another representative increases the overall capacity of
the customer service team, enabling the business to handle a larger volume of customer inquiries.
Before making a final decision, it's recommended to conduct a cost-benefit analysis to ensure
that the benefits of hiring a second representative outweigh the associated costs. This includes
Additionally, monitoring the impact of the additional representative through key performance
indicators (KPIs) can help assess the success of the decision and make any necessary adjustments
in the future.
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