London Business School Operation Management Analysis Essay

Description

1 – Web Designer [30 points]

A small one-person website developing company specialised in Search Engine Optimisation (SEO) products receives requests to redesign websites from the hospitality industry, due to her own past experience and contact in this sector. She can complete a project in two months on average once the work on the project is started. The web designer is busy 80% of the time, and has an average backlog of three projects waiting to be started.

1.1 What is the average arrival rate of projects to the web designer? [15 points]

1.2 What is the average waiting time for a project before the designer starts work on it? [15 points]

2. Specialty Coffee shop [40 points]

A small British roastery specialised in fair trade coffee has decided to open a specialty coffee shop near the roastery. The coffee shop experiences stable demand throughout the day, a new customer arriving in the store every 2 minutes on the average (this inter-arrival time is subject to unpredictable variability with a coefficient of variation equal to 1). In the absence of a queue each customer goes straight to the counter to place an order, otherwise they all join a single queue and wait for their turn at the counter.

Once at the counter, each customer requires about 3 minutes of service on average. However, this activity time is subject to unpredictable variability with a coefficient of variation of 1.5.

Currently the coffee shop has 2 check-out tills and 2 full-time staff members.

Q2.1 How many customers are waiting in line on average? [16 points]

Q2.2 What is the average queue waiting time for arriving customers? [8 points]

Q2.3 Currently the shop manager is considering replacing the single queue, with separate queues for each till. For the analysis he is assuming that the inter-arrival time to each queue is 4 minutes on average (still with a coefficient of variation of 1). What will be the average waiting time for arriving customers? [16 points]

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