Question

In: Operations Management

2. Courtney Newell, manager of the Silver Park Hotel, is considering how to restructure the front...

2. Courtney Newell, manager of the Silver Park Hotel, is considering how to restructure the front desk to improve guest service during the peak check-in hours of 3:00 to 5:00 p.m. At present, the hotel has 5 clerks on duty each with a separate waiting line.

Courtney is considering two plans for reducing the guest’s waiting time. The first proposal would be to implement a single waiting line in which guests would be served by whichever of the 5 clerks becomes available first. Observations of arrivals during the peak check-in time show that a guest arrives on average every 40 seconds. It takes an average of 3 minutes for the front-desk clerk to register each guest.

The second proposal would designate one employee as a “quick-service” clerk for guests registering under corporate accounts, a market segment that comprises about 30% of Silver Park’s guests. Since these guests would be pre-registered, it would take an average of only 0.5 minutes for the front-desk clerk to register them. Under this plan, the non-corporate guests would form a single line and proceed to the first available of the 4 remaining clerks. The average time for registering a non-corporate guest is 3.4 minutes.

Which proposal should Courtney implement? Provide appropriate quantitative evidence to support your recommendation.

Solutions

Expert Solution

Current system:

In the current system we have five M/M/1 queue system. Here λ = 60*60/40 = 90 per hour and µ = 60/3 = 20 per hour. However since there are 5 different queues, effectively it is λ = 18 per hour. We use the formulas shown below.

This means the average waiting time of the guests in the system is

W = 1/(µ - λ) = 1/(20-18) = 0.5 hours or 30 minutes.

First proposal:

In this system it becomes a M/M/c queue system where λ = 90, µ = 20 and c = 5. We use the formulas shown below.

This means that the probability of empty queue P0 = 0.005

L = 11.3624 customers and W = L/ λ = 11.3624/90 = 0.1262 hours or 7.57 minutes

Second proposal

This system will have two queues. One is M/M/1 where λ = 90*30% = 27 and µ = 60/0.5 = 120. The second system will have M/M/c queue where λ = 90*70% = 63, µ = 60/3.4 = 17.64 and c = 4.

In the M/M/1 system the average waiting time W = 1 / (120-27) = 0.0107 hours or 0.645 minutes

In the M/M/c queue system P0 = 0.0122

L = 10.0161 and W = 10.0161/63 = 0.159 hours or 9.54 minutes

The overall average waiting time becomes (27*0.645 + 63*9.54)/90 = 6.87 minutes

The second proposal lowers the overall time spent by guests in the front desk check-in system the most.


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