Operation Research 2
Operation research in SCM
delivery time vs.
pack up stock
Queuing
Q
g Models
restricted- vs. fully
range of facilities
transportation
suppliers
plants
economical
delivery size
Purchasedecisions
stock vs.
customer service
planned delivery
time vs. safety
stock
transportation
warehouses
capacity vs.
vs
stocksize
Productiondecisions
retail trade
distribution
structure
Storagedecisions
consumers
customer service
vs. delivery time
DistributionSCM
decisions
Emergency Room Layout
[Link]
E
R Triage
room
Patient A broken leg
Patient B - erratic
pacemaker
Laboratories
E.R. beds
Pharmacy
Billing/exit
3
Work Cell Floor Plan
Saws
Drills
Tool Room
Production system
Office
Work Cell
Waiting Line Examples
Situation
Bank
Arrivals
Customers
Doctor s
Doctors
office
Patient
Traffic
intersection
Cars
Servers
Teller
Doctor
Waiting Lines / Queue
Service Process
Deposit etc.
Treatment
Light
Assembly line Parts
Workers
Tool crib
Clerks
Workers
Controlled
passage
Assembly
Check out/in tools
Fi studied
First
di d by
b A.
A K.
K Erlang
El
in
i 1913
Body of knowledge called queuing theory
Analyzed telephone facilities
Queue is another name for waiting
Q
g line
Decision problem
Balance cost of providing good service with
cost of customers waiting
Deciding on the Optimum Level of Serv
Waiting Line Cost Analysis
Cost
Total expected cost
Minimum
total cost
a
b
c
d
e
f
g
Cost of pprovidingg
service
Average number of ships arriving per shift
A
Average
ti
time each
h ship
hi waits
it to
t be
b unloaded
l d d (hours)
(h
)
Total ship hours lost per shift (a x b)
Estimated cost per hours of idle ship time
Value of ship's lost time or waiting cost (c x d)
PT X team
t
salary,*
l
* or service
i costt
Total expected cost (e x f)
Number
1
5
7
35
$1,000
$35,000
$6 000
$6,000
$41,000
of team of PT X's working
2
3
4
5
5
5
4
3
2
20
15
10
$1,000
$1,000
$1,000
$20,000 $15,000 $10,000
$12 000 $18,000
$12,000
$18 000 $24,000
$24 000
$32,000 $33,000 $34,000
Negative Cost of waiting
time to company
Team = 50, 12 hours/day, $10/hours
Low level
of service
Optimal
p
service level
High
g level
of service
Optimal Cost
9
Three Parts of a Queuing System
at Car
Car-Wash
Wash
Waiting Line Terminology
10
Queue: Waiting
Q
W iti line
li
Arrival: 1 person, machine, part, etc. that
arrives and demands service
Queue discipline:
Q
p
Rules for determining
g
the order that arrivals receive service
Channel: Number of waiting lines
Phase: Number of steps in service
11
12
Characteristics of a
Waiting Line System
0.30
0 30
0.30
0.25
0.25
0.20
0.20
0.15
Probability
0.10
0 05
0.05
0.00
0.15
0.10
0.05
6
x
9 10 11 12
0.00
=2
6
x
13
Number
X
0
P(X)
= 6.0
10
X
6
.6
.3
.0
Waiting Line
Characteristics
Ch
t i ti
Service Facility
Ch
Characteristics
t i ti
Arrival rate distribution
Poisson
Other
Length of the queue
limited
unlimited
Number of channels
single
multiple
Pattern of arrivals
random
scheduled
Service priority
FIFO
other
Number of phases in service
system
single
multiple
Service time distribution
negative exponential
other
Behavior of the arrivals
join the queue, and wait until
served
balk; refuse to joint the line
renege; leave the line
time, &
time between arrivals
Example: Service time
is 20 min.
Mean service rate =
e.g., customers/hr.
t
/h
Mean service time = 1/
Equation:
14
Service
= 0.5
P(X)
- x
e
P( X = x | ) =
x!
.6
.3
.0
of events that
occur in an interval of
time
Example: Number of
customers that arrive
i 15 min.
in
i
Mean = (e.g., 5/hr.)
Probability:
Arrival
Characteristics
Ch
t i ti
Size of the source population
limited
unlimited
9 10 11 12
=4
Probability
Poisson Distributions for
Arrival Times
f (t | ) = e t
.8
.4
.0
t
0
.8
.4
.0
= 0.8
f(t)
= 0.4
f(t)
t
0
S g e C a e , Single-Phase
Single-Channel,
S g e ase
System
Service system
Arrivals
Ships at
sea
Queue
Service
facility
Ship unloading system
Waitingg ship
p line
S g e C a e , Multi-Phase
Single-Channel,
ut
ase
System
Service system
y
Served
units
Arrivals
Empty
ships
p
Cars
in area
Queue
Waiting cars
Pay
Multi-Channel,
u t C a e , Single
S g e Phase
ase
System
A i l
Arrivals
Queue
Service
f ilit
facility
Service
facility
Example: Bank customers wait in single line
for one of several tellers.
tellers
Service
f ilit
facility
McDonalds drive-through
Dock
Service system
y
Service
f ilit
facility
Served
units
Cars
& food
Pickup
Multi-Channel,
u t C a e , Multi-Phase
ut
ase
System
Service system
y
Served
units
A i l
Arrivals
Queue
Service
f ilit
facility
Service
f ilit
facility
Service
facility
Service
facility
Served
units
Example: At a laundromat, customers use one of
several washers,
washers then one of several dryers.
dryers
Waiting-Line Performance
Measures
Average queue time
time, Wq
Average queue length, Lq
Average time in system, Ws
Average
g number in system,
y
Ls
Probability of idle service facility, P0
System utilization,
utilization
Probability of k units in system, Pn > k
Assumptions
ssu pt o s o
of tthe
e Basic
as c
Queuing Model
Simple (M/M/1) Model
Characteristics
Types of Queuing Models
Simple (M/M/1)
Example:
M lti h
Multi-channel
l (M/M/S)
Example:
Airline ticket counter
Constant Service (M/D/1)
Example:
Information booth at mall
Automated car wash
Limited Population
Example:
Department with only 7 drills
arrivals
i l are served
d on a first
fi
come, fi
first served
d
basis
arrivals are independent
p
of p
preceding
g arrivals
arrival rates are described by the Poisson
probability distribution, and customers come
from a very large population
service times vary from one customer to another,
and are independent of one and other; the average
service time is known
service times are described by the exponential
probability distribution
the service rate is greater than the arrival rate
T
Type:
Single-channel,
Si l h
l single-phase
i l h
system
t
Input source: Infinite; no balks, no reneging
Arrival distribution: Poisson
Queue: Unlimited; single line
Queue discipline: FIFO (FCFS)
Service distribution: exponential
Relationship: Independent service & arrival
Service rate > arrival rate
S p e ((M/M/1)
Simple
/ / ) Probability
obab ty
Equations
Simple (M/M/1) Model Equations
Eq ations
Average number of
units in sistem
Average time in
system
Average number of units
in queue
Average
ve age ttimee in queue
System
y
utilization
Ls =
Probability of 0 units in system, i.e., system idle:
1
Ws =
-
Lq =
P = 1- = 10
Probabilityy of more than k units in system:
y
( - )
Wq =
( - )
Pn>k=
Multichannel (M/M/S) Model
Characteristics
Total hourly service cost = mCs
m = number of channels
Cs= service cost (labor cost) of each channel
Total waiting cost per time period =
(Wq)Cw
T t l costt = mC
Total
Cs + (Wq)Cw
()
Where n is the number of units in the system
The costs of a queuing system
k+1
Type: Multichannel system
Input source: Infinite; no balks, no reneging
Arrival distribution: Poisson
Queue: Unlimited; multiple lines
Q
Queue
discipline:
di i li
FIFO
O (FCFS)
( C S)
Service distribution: Negative exponential
Relationship: Independent service & arrival
Service rates > arrival rate
Model B (M/M/S) Equations
1
Probability of zero
people or units in the
y
system:
P0 =
Average number of
people
l or units
it in
i the
th
system:
Ls =
P0
(M 1)! (M )
Average time a unit
spends in the system:
Ws =
P0 +
2
(M 1 )! (M )
M 1 1 n 1 M M
+
n =0 n! M! M
Constant Service Rate (M/D/1)
Model Characteristics
Type: Single-channel, single-phase system
Input source: Infinite; no balks, no reneging
Arrival distribution: Poisson
Queue: Unlimited; single line
Q
Queue
discipline:
di i li
FIFO
O (FCFS)
( C S)
Service distribution: Negative exponential
Relationship: Independent service & arrival
Service rates > arrival rate
Model B (M/M/S) Equations
Average number of
people or units waiting
for service:
Lq = Ls
Average time a person
p
in the
or unit spends
queue
Wq = Ws
Model C (M/D/1) Equations
Average number of people or
units waiting for service:
Lq =
2
2 ( )
Average time
A
ti a person or unitit
spends in the queue
Wq =
2 ( )
Average number
A
b off people
l or
units in the system:
Ls = Lq +
Average time a unit spends in
the system:
Ws = W q +
