Operation Management
Homework Assignment #3 : Quantitative Problem Set 2
Group 6
Q 7.3(Car Rental Company)
m= 50 | (hour) | a | 2.4 | CVa | 1.000 | p | 72.0 | CVp | 0.333 |
a. The average number of SUVs parked = 50cars × (1 – 60%) = 20cars
* Utilization = p / ( a × m) = 72.0 / (2.4 × 50) = 60%
b. 1) Analysis of process :
a. Calculate Utilization
b. Calculate Revenue 2) The daily revenue of this company increase from 2,400 to 2,640. (Revenue increases about 240)
| AS-IS | TO-BE | Variation | a | 2.4 | 2.0 | -0.4 | P | 72.0 | 96.0 | 24.0 | Utilization | 60.0% | 96.0% | 36.0% | Price | 80 | 55 | -25 | Revenue | 2,400 | 2,640 | 240 |
c. Waiting time in the queue, Tq = 0.0192hr
d. Waiting time in the queue, Tq increases about 0.0268hr. | AS-IS | TO-BE | Variation | a | 2.4 | 3.0 | 0.6 | CVa | 1.0 | 1.0 | - | p | 72.0 | 96.0 | 24.0 | CVp | 0.330 | 0.000 | -0.33 | Utilization | 60.0% | 64.0% | 4.0% | Tq(hr) | 0.0192 | 0.0460 | 0.0268 |
Q 6.9(Powered by Koffee)
a. Q* = 75
R | 600 | Annual interest | 0.24 | Unit cost | 25 | K | 85 | H | 18.0 | Q* | 75.28 |
Q* = 75, Annual Total Cost = 1,355.00000
Q* = 76, Annual Total Cost = 1,355.05263
b. Number of orders per year = R/Q* = 600 / 75 = 8
c. Holding Cost(month) = 56.25
| (Yearly) | (monthly) | Holding Cost | 675.00 | 56.25 |
d. According to total cost and purchase cost, PBK should make a deal with the current supplier.
| AS-IS | TO-BE(Q*) | R | 600 | 600 | Annual interest | 0.24 | 0.24 | Unit cost | 25 | 20 | K | 85 | 2,000 | H | 18.0 | 16.8 | Q* | 75 | 378 | Annual total cost | 1,355 | 6,350 | Purchase cost | 15,000 | 12,000 | Sum | 16,355 | 18,350
Group 6
Q 7.3(Car Rental Company)
m= 50 | (hour) | a | 2.4 | CVa | 1.000 | p | 72.0 | CVp | 0.333 |
a. The average number of SUVs parked = 50cars × (1 – 60%) = 20cars
* Utilization = p / ( a × m) = 72.0 / (2.4 × 50) = 60%
b. 1) Analysis of process :
a. Calculate Utilization
b. Calculate Revenue 2) The daily revenue of this company increase from 2,400 to 2,640. (Revenue increases about 240)
| AS-IS | TO-BE | Variation | a | 2.4 | 2.0 | -0.4 | P | 72.0 | 96.0 | 24.0 | Utilization | 60.0% | 96.0% | 36.0% | Price | 80 | 55 | -25 | Revenue | 2,400 | 2,640 | 240 |
c. Waiting time in the queue, Tq = 0.0192hr
d. Waiting time in the queue, Tq increases about 0.0268hr. | AS-IS | TO-BE | Variation | a | 2.4 | 3.0 | 0.6 | CVa | 1.0 | 1.0 | - | p | 72.0 | 96.0 | 24.0 | CVp | 0.330 | 0.000 | -0.33 | Utilization | 60.0% | 64.0% | 4.0% | Tq(hr) | 0.0192 | 0.0460 | 0.0268 |
Q 6.9(Powered by Koffee)
a. Q* = 75
R | 600 | Annual interest | 0.24 | Unit cost | 25 | K | 85 | H | 18.0 | Q* | 75.28 |
Q* = 75, Annual Total Cost = 1,355.00000
Q* = 76, Annual Total Cost = 1,355.05263
b. Number of orders per year = R/Q* = 600 / 75 = 8
c. Holding Cost(month) = 56.25
| (Yearly) | (monthly) | Holding Cost | 675.00 | 56.25 |
d. According to total cost and purchase cost, PBK should make a deal with the current supplier.
| AS-IS | TO-BE(Q*) | R | 600 | 600 | Annual interest | 0.24 | 0.24 | Unit cost | 25 | 20 | K | 85 | 2,000 | H | 18.0 | 16.8 | Q* | 75 | 378 | Annual total cost | 1,355 | 6,350 | Purchase cost | 15,000 | 12,000 | Sum | 16,355 | 18,350