BUS 660 Topic 7 Assignment; Benchmark - Data Analysis Case Study (Managerial Report)
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This is a case study that is based on a company called Office Equipment, INC. I will describe a little background of this case study as I will answer several questions and provide a background of the company. The Office Equipment INC currently leases automatic mailing machines to their customers. With these machines the company provides a service contract that indicates that a service tech will arrive at the customer’s site within three hours for the time that OEI receives the help desk ticket. The OEI company has currently ten customers, and they would like to expand their current business to twenty customers in one year and within two years have thirty customers. The purpose of this paper is to do an analysis of adding an additional technician is truly cost effective and what the most efficient decisions will be. This is assignment is to outline a waiting line model as well to conduct an analysis of the most efficient way to use time and resources in the company’s maintenance services. I will use to the following areas to discuss OEI arrival rates, the service rates, wait line models, and what type of recommendation for how many technicians are required.
The Arrival Rates and Service Rates
The status of OEI is that they only have one technician which is efficient for the number of clients they have. As the company wants to expand over the next few years it will mean that they will have to expand as well. The status for that one technician to handle a service call for a single customer is fifty hours. “The arrival rates are defined as an average number of customers that are arriving during a specific time period while the service rates are the overall average of customers that are able to be served at any specific time (Reid and Sanders, 2013).” To calculate the arrival rate, the company will have to divide the fifty hours to gather the needed information for a single call of .02per hour. This requires the technician to travel at one hour to a single destination which will in return effect the rates of service. Travel time is a large problem with this is during the travel time no repairs are taking place. So, to recover their loss is to have the customer pay for the travel time which would be added as 1.5hrs of repair time, this would require that the service rate would be 1hr divided by 2.5 hours so this would allow the company to be able to provide services for .4 customers per hour……..Continue
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