Question

complete a and b for a positive rating!

4. A) Use a real or hypothetical example to briefly explain the importance of queuing analysis:

b) Use a real or hypothetical example to briefly explain the importance of inventory analysis

Answer 1

a) Queuing analysis is concerned with the mathematical study of congestions and delays of waiting in line.Queuing theory can help users to make informed business decisions on how to build cost -effective workflow systems.

Queuing analysis would be a powerful tool in improving business environment and business outcomes.For example, A store manager can make use of the analysis in the following ways

* He can determine when and why the do the store get ques - There may be be too many people and too few desks.

* He will have to find answers to the question ,What are the solutions? Or what can they do about it? - The store should make the facilities to let more people in and they should try to first serve the people who need little service time .

Queuing models describe the behaviour of queuing systems and evaluate system performance.

b) lnventory analysis refers the examination of inventory to determine the optimum amount to keep in hand. Inventory plays an important role in the smooth functioning of a company's business since it acts as a buffer between the production and completion of customers' orders.

ABC analysis is a popular inventory analysis method.It suggests that inventories of an organization are not of equal value.Thus the inventory is grouped into three categories ( A,B and C) in order of their estimated importance.

Lets look at an example of inventory analysis using ABC method.

Suppose Linda has a business of t-shirts which is very successful.suppose, in search for varieties, she has filled 180 types of t- shirts instead of 50 types .she now realises that this business is seasonal and she has already invested a lot.At this juncture, what Linda can do is an inventory analysis using ABC method.first she must categorise t- shirts into three categories depending on their selling ratio, price demand etc .

By doing such an analysis she will be able to attain inventory optimisation which will inturn help her to achieve efficiency and productivity in operations.