WAITING LINE MODELS

The Honda dealership in Atlanta is one of the largest in the world and has a large number of mechanics on duty every workday. Each mechanic is paid $31 per hour. Mechanics go to the parts counter whenever they need a part. At the parts counter THERE IS CURRENTLY just one parts man at the counter who services all mechanics. The parts man is paid $17 per hour. During the day the average number of mechanics that go to the parts counter per hour is 18. The parts man is very hard working and takes only 2.5 minutes on the average to serve each mechanic

1. Write the last 5 digits of your Social Security Number
2. Given the characteristics of this one channel service system compute the current total system cost per hour.
3. A 2nd and 3rd parts counter (with a parts man at each) could be added, each with the same average service time and service cost per hour as the existing counter. Compute the total system cost per hour using TWO and THREE counters.
4. To make the counters more productive a Parts Assistants can be hired at $3 per hour each to go to the shelves and pick up parts while the parts man at each counter talks to a mechanic. This would reduce the average service time at each counter to 90 seconds. Each parts assistant would work at only one counter. If you were a management consultant hired by Honda would you recommend using or not using parts assistants AND how many parts counters (1, 2, etc.) would you recommend that Honda operate? Explain your recommendation (ie, show your work)
5. Given your Recommendation:
   1. What is average number of mechanics at the parts window being served at any point in time?
   2. What is the average number of mechanics in the service system at any point in time?
   3. What is the average Time a mechanic spends waiting in line before being served?
6. How many minutes less will mechanics spend in Honda’s Service System with your recommendation compared to their CURRENT situation?

Price: $10.77

Solution: The downloadable solution consists of 5 pages, 577 words and 6 charts.
Deliverable: Word Document