First the order is received and typed into the system

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Reference no: EM132224486

Order Processing

In a mail order company a receptionist has three steps to complete when a call comes in. First the order is received and typed into the system. Then he checks the stock to see if the product is available. Finally, he arranges the shipment from that location. The processing times are:

Receive Order: 5 minutes/order

Check Stock: 2 minutes/order

Arrange Shipment: 10 minutes/order

1f. What is the resource utilization of Check Stock, if the demand rate decreases to 5 units per hour?

Hint: what is the flow rate now?

100%

83.3%

41.7%

16.7%

1g. Given that the demand is 5 units per hour, what kind of process is this: supply-constrained, demand-constrained or capacity-constrained?

1h. How could you improve the process, given that demand stays at 5 units per hour?

a) Have a marketing promotion to increase the demand

b) Decrease the capacity at Arrange Shipment to 5 units/hour

c) Put a second operator in parallel for Arrange Shipment.

d) Increase the capacity of Receive Order to 30 units/hour

Reference no: EM132224486

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