Question

In: Operations Management

Write a response to the following in a minimum of 500 words: Consider the following questions...

Write a response to the following in a minimum of 500 words:

Consider the following questions based on customer service essentials:

  • Why are there economies of scale in queuing systems?
  • What are the pros and cons of pooled-queue systems and separate-queue systems? Provide examples along with your opinion of the best option.
  • Provide an example of how variability can reduce capacity.
  • Once compromised, how can capacity be restored?

Solutions

Expert Solution

1.   Economies of scale are there in the queuing systems because they inherent to the queuing process. The economies would result in the improvement of the performance of the service system, such as overall time in the system or reduction in the waiting in the queue. Let’s take the example two serving units with one server each and facing the same expected rates of the arrival may benefit from the merge of their service. Although two servers will continue to work independently, allowing customers from a single line. Customers will wait in this way if both servers are occupied.

2.   This is widely accepted that the multi-server separate queuing (SQ) system outperforms the multi-server pooling queue system because of the pooling effect. Operating with the pooling queue is beneficial as compared to the dedicated single queue because pooling reduces long-run average time. Or in, fact when the jobs cannot make decisions and when the jobs are identical then pooling queues improves social welfare in the mentioned setting. Customers are delay-sensitive they always decide to join or balk according to the length of the queue. Let’s take the example you are visiting the bank and you see that there is already a long line outside the bank for the cash counter so instead of the moving in the line, you tend to balk or walk away after seeing the line that is the disadvantage of the single queue or the separate queue systems. And the pooling queue increases the average long-run sojourn time than the dedicated ones under certain conditions.


3.   Variability can reduce capacity
Example of paper manufacturing – An important measure of paper quality is thickness. If there is high process variability sometimes the quality of the thickness is less than the lower limit of specification determined by the customer hence resulting in the loss of sales. Hence affecting the capacity
Therefore the right strategy is reducing the variability itself so that the capacity can be restored if we will try to reduce the variability itself it will lead to restoring the capacity itself.


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