operation management problems
The management of the Sky Tower in Auckland, New Zealand, is seeking improvement of its operational design. There are three steps that a typical visitor should go through to get to the observation deck:
1. Ticketing: There are 3 windows open during peak times. Each clerk could serve 80 customers/hour, and each of those customers pays for 1.9 tickets on average. There is a single queue, and the rst customer in the queue goes to the rst available window.
2. Security: There are 2 security ocers working in parallel. Checking each visitor takes on average 20 seconds. All people should be checked.
3. Elevators: There are two dedicated elevators running continuously, and one more that could be added during peak times. Each elevator is able to transport "one-way" 200 persons per hour (i.e. each elevator can take 200 persons per hour towards the top floor, and 200 persons per hour from the top oor to the lobby). Visitors stay on average 30 minutes in the top floor, walking around and taking pictures. There is enough space to hold up to 250 people at
the same time there.
a) What is the capacity (i.e. visitors per hour) of each stage in the system during peak times? What is the bottleneck? Justify your answer. Hint: For ticketing, calculate how many people really pass through the process. For example, if a couple is there, then just one of them is served at the window, but they both get their tickets and pass through the process.
b) Is it necessary to use the third elevator during peak time? Explain.
c) If each ticket costs $20, what is the revenue rate of the system when it works at full ca-
pacity?
d) The service system seems to exhibit some problems during peak times, when 500 visitors arrive per hour. Peter Clear, member of the management sta, proposed the following: \Given that we are having long queues in front of the ticket oce during peak times, we are denitely having a stang problem there. It seems that opening one or two more ticketing windows will solve our problems since people will speed up along the whole system. Moreover, that will increase our revenues per hour!". Do you agree with Peter's assertion? Justify your answer.
e) With the objective of determining the required stang level at the deck to serve customers at the cafeteria and shops, and to address general questions, it is estimated that one employee for every 20 customers is needed. How many employees are needed at the deck during peak time?
The management of the Sky Tower in Auckland, New Zealand, is seeking improvement of its operational design. There are three steps that a typical visitor should go through to get to the observation deck:
1. Ticketing: There are 3 windows open during peak times. Each clerk could serve 80 customers/hour, and each of those customers pays for 1.9 tickets on average. There is a single queue, and the rst customer in the queue goes to the rst available window.
2. Security: There are 2 security ocers working in parallel. Checking each visitor takes on average 20 seconds. All people should be checked.
3. Elevators: There are two dedicated elevators running continuously, and one more that could be added during peak times. Each elevator is able to transport "one-way" 200 persons per hour (i.e. each elevator can take 200 persons per hour towards the top floor, and 200 persons per hour from the top oor to the lobby). Visitors stay on average 30 minutes in the top floor, walking around and taking pictures. There is enough space to hold up to 250 people at
the same time there.
a) What is the capacity (i.e. visitors per hour) of each stage in the system during peak times? What is the bottleneck? Justify your answer. Hint: For ticketing, calculate how many people really pass through the process. For example, if a couple is there, then just one of them is served at the window, but they both get their tickets and pass through the process.
b) Is it necessary to use the third elevator during peak time? Explain.
c) If each ticket costs $20, what is the revenue rate of the system when it works at full ca-
pacity?
d) The service system seems to exhibit some problems during peak times, when 500 visitors arrive per hour. Peter Clear, member of the management sta, proposed the following: \Given that we are having long queues in front of the ticket oce during peak times, we are denitely having a stang problem there. It seems that opening one or two more ticketing windows will solve our problems since people will speed up along the whole system. Moreover, that will increase our revenues per hour!". Do you agree with Peter's assertion? Justify your answer.
e) With the objective of determining the required stang level at the deck to serve customers at the cafeteria and shops, and to address general questions, it is estimated that one employee for every 20 customers is needed. How many employees are needed at the deck during peak time?
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