In Process Inventory

In: Business and Management

Submitted By Joako13
Words 1447
Pages 6
IndE 311: Stochastic Models and Decision Analysis
Winter 2007
Lab 7: Problem Session

Pr. 17.10-3) The Garrett-Tompkins Company provides three copy machines in its copying room for the use of its employees. However, due to recent complaints about considerable time being wasted for a copier to become free, management is considering adding one or more additional copy machines. During the 2000 working hours per year, employees arrive at the copying room according to a Poisson process at a mean rate of 30 per hour. The time each employee needs with a copy machine is believed to have an exponential with a mean of 5 minutes. The lost productivity due to an employee spending time in the copying room is estimated to cost the company an average of $25 per hour. Each copy machine is leased for $3000 per year. Determine how many copy machines the company should have to minimize its expected total cost per hour.

• Describe queuing model (i.e, M / M /s, M / M/ s // K, etc.) [pic]

• [pic][pic]

| |3 machines |4 machines |5 machines |6 machines |7 machines |
|E (SC) | | | | | |
|E(WC) | | | | | |
|E(TC) | | | | | |

Case 17.1 Reducing In-Process Inventory

Jim Wells, vice-president for manufacturing of the Northern Company, is exasperated. His walk through the company’s most important plant this morning has left him in a foul mood. However, he now can vent his temper at Carstairs, the plant’s production manager,…...

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