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    CASE 10.1 - Minentonka Warehouse

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    Khoa Kris
    Wayne Schuller manages a warehouse and is concerned with the number of workers to assign to the unloading dock. He faces penalties if delivery trucks have to wait to be unloaded. Wayne considers using queueing theory to determine the optimal team size. He identifies arrival and service rates for teams of 2-5 workers. Queueing theory will help Wayne minimize costs by finding the team size that balances providing service and costs of waiting.

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    CASE 10.1 - Minentonka Warehouse

    Uploaded by

    Khoa Kris
    75 views1 page
    Wayne Schuller manages a warehouse and is concerned with the number of workers to assign to the unloading dock. He faces penalties if delivery trucks have to wait to be unloaded. Wayne considers using queueing theory to determine the optimal team size. He identifies arrival and service rates for teams of 2-5 workers. Queueing theory will help Wayne minimize costs by finding the team size that balances providing service and costs of waiting.

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    Wayne Schuller manages a warehouse and is concerned with the number of workers to assign to the unloading dock. He faces penalties if delivery trucks have to wait to be unloaded. Wayne considers using queueing theory to determine the optimal team size. He identifies arrival and service rates for teams of 2-5 workers. Queueing theory will help Wayne minimize costs by finding the team size that balances providing service and costs of waiting.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    75 views1 page

    CASE 10.1 - Minentonka Warehouse

    Uploaded by

    Khoa Kris
    Wayne Schuller manages a warehouse and is concerned with the number of workers to assign to the unloading dock. He faces penalties if delivery trucks have to wait to be unloaded. Wayne considers using queueing theory to determine the optimal team size. He identifies arrival and service rates for teams of 2-5 workers. Queueing theory will help Wayne minimize costs by finding the team size that balances providing service and costs of waiting.

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    Case 10.1 Minnetonka Warehouse 6.

    The unloading times given in the preceding items (1 – 5)


    are average figures.
    Wayne Schuller managed a warehouse in Minnetonka, 7. Each warehouse worker received $14 per hour, must be
    Minnesota. His major concern was the number of workers to paid for an entire shift, and – because of union work rules
    assign to his single unloading dock. After he began contracting – cannot be assigned to other tasks within the warehouse.
    with motor carriers for deliveries, he found that they were 8. Because if its contract with the carriers, the Minnetonka
    assessing him stiff penalties if their trucks had to wait to be warehouse must pay the motor carriers that own idle
    unloaded. Wayne started adding larger crews at the unloading trucks at the rate of $60 per hour wile the trucks stand idle,
    dock, but often they seemed idle because there were no trucks waiting to be unloaded.
    to unload. Wayne recalled from college that queueing theory
    might be applicable to such a problem.
    The theory of queueing is an analysis of the probabilities Questions
    associated with waiting in line, assuming that orders, customers,
    and so on arrive in some pattern (often a random pattern) to stand 1. For each of the four work team sizes, calculate the
    in line. A common situation is that on the average a facility may expected number of trucks in the queue waiting to be
    have excess capacity, but often it is more than full, with a backlog unloaded.
    of work to be done. Often, this backlog has costs associated with 2. For each of the four work team sizes, calculate the
    it, including penalties to be paid or customers who walk away expected time in the queue—that is, the expected time a
    rather than wait. If a firm expands its capacity to reduce waiting truck has to wait in line to be unloaded.
    times, then its costs go up and must be paid even when the facility 3. For each of the four work team sizes, what is the
    is idle. Queueing theory is used to find the best level of capacity, probability that a truck cannot be unloaded immediately?
    the one that minimizes the costs of providing a service and the 4. Which of the four work teams has the lowest cost to
    costs of those waiting to use the service. Wayne?
    5. Wayne is also considering rental of a forklift to use in truck
    After some further research specific to his firm, Wayne unloading. A team of only two would be needed, but the
    determined the following facts: hourly cost would be $38 per hour ($28 for the workers and
    1. Trucks arrive randomly at the average rate of 4 per hour, $10 for the forklift). They could unload a truck in five
    with a deviation of plus or minus one. minutes. Should Wayne rent the forklift?
    2. A team of two warehouse workers can unload trucks at the
    rate of 5 per hour, or one every 12 minutes.
    3. A team of three warehouse workers can unload trucks at
    the rate of 8 per hour, or one every 7.5 minutes.
    4. A team of four warehouse workers can unload trucks at
    the rate of 10 per hour, or one every 6 minutes.
    5. A team of five warehouse workers can unload trucks at the
    rate of 11 per hour, or one every 4.45 minutes

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