Operations and Supply Chain Management The Core

related to resources such as inventory, transportation, and production.
3. Managing customer touch points. As companies strive to become superefficient,
they often scrimp on customer support personnel (and training) required to effectively
staff service departments, help lines, and checkout counters. This leads to the
frustrations we have all experienced, such as being placed in call-center limbo seemingly
for hours, getting bad advice when finally interacting with a company rep, and
WALKTHROUGH xvii
so on. The issue here is to recognize that making resource utilization decisions must
capture the implicit costs of lost customers as well as the direct costs of staffing.
4. Raising senior management awareness of OSCM as a significant competitive
weapon. Many senior executives entered the organization through finance, strategy,
or marketing; built their reputations on work in these areas; and as a result
L q often = _______ λ 2
take OSCM W for q = ___
L q
granted. P As n = we 1 will − λ n
_
λ__
demonstrate P in this book, this can be
a critical
μ(μ −
mistake
λ)
when
λ ( 0 = 1 − _ λ
we realize how profitable
μ)( μ) (
companies such
μ)
as Amazon,
Apple, Taco Bell, and Southwest Airlines are. These are companies where executives
have creatively L s = ____ λ
used OSCM W for s = ___ L s
competitive ρ = λ [7.3]
__
advantage.
Model 1 (See Exhibit 7.12.)
Concept Connections
Concept Connections draws together various end-of-chapter sections
including Key Terms, Solved Problems, Discussion Questions, Objective
Questions, Cases, Analytics Exercises, and Practice Exams.
Model 2
Solved Problems
μ − λ
CONCEPT CONNECTIONS
LO1–1 Identify the elements of operations and supply chain management (OSCM).
∙ Processes are used to implement L q = ________ λ 2
the strategy of the W firm. q = ___
L q
∙ Analytics are used to support the 2μ(μ ongoing − λ) decisions needed λto manage the firm.
Operations and supply chain management (OSCM) The design, operation, and
improvement of the systems that create L s = and L q deliver + __ λ the firm’s W s primary = ___ L s
products and services.
μ
λ
Process One or more activities that transform inputs into outputs.
Product–service bundling When a firm builds service activities into its product offerings to
create additional value for the customer.
Model 3
LO1–2 Evaluate the efficiency of the firm.
L s = L q + __ λ W s = ___ L s
Criteria that relate to how well the firm is doing μinclude:
λ
∙ Efficiency
∙ Effectiveness W q = ___
L q
P w = L
Sμ_ q
∙ Value created in its products and λservices
( λ − 1 )
Representative problems are placed at the end of appropriate chapters.
Each includes a worked-out solution giving students a review before
solving problems on their own.
λ
μ
SERVICE PROCESSES chapter 7 229
[7.4]
[7.5]
SOLVED PROBLEMS
jac38881_ch01_002-023.indd 19 08/02/18 02:59 PM
SOLVED PROBLEM 1
Quick Lube Inc. operates a fast lube and oil change garage. On a typical day, customers arrive at the
rate of three per hour, and lube jobs are performed at an average rate of one every 15 minutes. The
mechanics operate as a team on one car at a time.
Excel:
Assuming Poisson arrivals and exponential service, find:
Queue
a. The utilization of the lube team.
b. The average number of cars in line.
c. The average time a car waits before it is lubed.
d. The total time it takes to go through the system (that is, waiting in line plus lube time).
Solution
λ = 3, μ = 4
a. Utilization ρ = __ λ μ = __ 3 = 75 percent .
4
λ 2
b. L q = ________
μ(μ − λ) = ________ 3 2
4(4 − 3) = __ 9 = 2.25 cars in line .
4
c. W q = ___
L q
λ = ____ 2.25 = 0.75 hour, or 45 minutes.
3
d. W s = __ L s
λ = _____ λ
μ − λ / λ = _____ 3
4 − 3 / 3 = 1 hour (waiting + lube) .