FINANCE- On the tab labeled "MMs" you will find the Q.xls model required

On the tab labeled "MMs" you will find the Q.xls model required to solve Problem 11 on Page 729. Read the problem carefully
to familiarize yourself with the scenario.
On the tab labeled "Solutions", there are 5 questions about the problem that will require you to either make an input to the Q.xls
model or interpret the results of the model upon entering the required information. Remember, inputs and outputs from the
Q.xls model are always in terms of increments per hour. Each question is worth 4 points: 2 points for producing the correct
technical information and 2 points for a clear, concise, grammatically answer to the question. Questions should be answered
on the Solutions tab and typed in unbolded black font right after the statement of the question.
Good luck, enjoy the collaboration and as always...HAVE FUN!

QUEUING TEMPLATES
QUEUING TEMPLATES
© 2005 by David W. Ashley
© 2005 by David W. Ashley
Ver. 9.3.01
Ver. 9.3.01

This workbook computes queuing results for the following models:
M/M/s
M / M / s with finite queue length
M / M / s with finite arrival population
M/G/1
Click on the page tab to use the model of your choice. Enter the required
parameters in the boxes.
Parameters for all models are initially linked to those entered for M/M/s.
Calculations are limited to 170 servers in the M/M/s model, a total of 170
servers plus queue capacity in M/M/s with finite queue length, and a population
of 500 (170 servers) in M/M/s with finite arrival population.

M/M/s
Arrival rate
Service rate
Number of servers
Utilization
P(0), probability that the system is empty
Lq, expected queue length
L, expected number in system
Wq, expected time in queue
W, expected total time in system
Probability that a customer waits

15
15
15

Assumes Poisson process for
arrivals and services.

6.67%
0.3679
0.0000
1.0000
0.0000
0.0667
0.0000

0.4
0.3
Proba bility
0.2
0.1
0
NUMBER IN SYSTEM

M/M/s with Finite Queue
Arrival rate
Service rate
Number of servers
Maximum queue length
Utilization
P(0), probability that the system is empty
Lq, expected queue length
L, expected number in system
Wq, expected time in queue
W, expected total time in system
Probability that a customer waits
Probability that a customer balks

15
15
15
155
6.67%
0.3679
0.0000
1.0000
0.0000
0.0667
0.0000
0.0000

0.4
Probability
0.2
0
NUMBER IN SYSTEM

M/M/s with Finite Population
Arrival rate
Service rate
Number of servers
Population size
Utilization
P(0), probability that the system is empty
Lq, expected queue length
L, expected number in system
Wq, expected time in queue
W, expected total time in system
Probability that a customer waits

overall arrival rate

0.03 (per customer)
15 (per server)
15
500
6.65%
0.3682
0.0000
0.9980
0.0000
0.0667
0.0000

0.4
Probability
0.3
0.2
0.1
0
NUMBER IN SYSTEM

15

M/G/1

average
service RATE

Arrival rate
Average service TIME
Standard dev. of service time

15
###
###

15

THE ARRIVAL RATE SHOULD BE LESS THAN THE OVERALL SERVICE RATE!
Utilization
P(0), probability that the system is empty
Lq, expected queue length
L, expected number in system
Wq, expected time in queue
W, expected total time in system

100.00%
0.0000
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!

Question 1 (4 Points) Assuming an arrival and service rate of one truck per hour, is it a feasible for Seabreeze to employ just one server? Why or
why not?
Question 2 (4 Points) Assuming an arrival rate of one truck per hour, a service rate of two trucks per hour, and a total of two employees, what is the
total hourly cost of when conisdering employee salaries/benefits and the hour cost to the company for having a truck sitting at the dock for loading
or unloading? Recall, the cost of each employee is $21/hour and when considering the cost to the company for having a truck in the queue, the
hourly cost is $35/hour though prorated for the total time spent in the system.
Question 3 (4 Points) Assuming an arrival rate of one truck per hour, a service rate of three trucks per hour, and a total of three employees, what is
the total hourly cost of when conisdering employee salaries/benefits and the hour cost to the company for having a truck sitting at the dock for
loading or unloading? Recall, the cost of each employee is $21/hour and when considering the cost to the company for having a truck in the queue,
the hourly cost is $35/hour though prorated for the total time spent in the system.
Question 4 (4 Points) Assuming an arrival rate of one truck per hour, a service rate of four trucks per hour, and a total of four employees, what is the
total hourly cost of when conisdering employee salaries/benefits and the hour cost to the company for having a truck sitting at the dock for loading
or unloading? Recall, the cost of each employee is $21/hour and when considering the cost to the company for having a truck in the queue, the
hourly cost is $35/hour though prorated for the total time spent in the system.
Question 5 (4 Points) What is the best employment strategy for Seabreeze, 1, 2, 3, or 4 hourly employees? Why?