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Advance Waiting Line Theory and Simulation Modeling Supplement Objectives Be able to: Describe different types of waiting line systems. Use statistics-based formulas to estimate waiting line lengths and waiting times for three different types of waiting line systems. Explain the purpose, advantages and disadvantages, and steps of simulation modeling. Develop a simple Monte Carlo simulation using Microsoft Excel. Develop and analyze a system using SimQuick. © 2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN: 0131791036 Supplement 8S, Slide 2 Alternative Waiting Lines • Single-Channel, Single-Phase – Ticket window at theater, • Multiple-Channel, Single-Phase – Tellers at the bank, windows at post office • Single-Channel, Multiple-Phase – Line at the Laundromat, DMV © 2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN: 0131791036 Supplement 8S, Slide 3 Alternative Waiting Lines Multiple-Channel, Single-Phase Single-Channel, Single-Phase Single-Channel, Multiple-Phase © 2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN: 0131791036 Supplement 8S, Slide 4 Assumptions • Arrivals – At random (Poisson, exponential distributions) – Fixed (appointments, service intervals) • Service times – Variable (exponential, normal distributions) – Fixed (constant service time) • Other – Size of arrival population, priority rules, balking, reneging © 2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN: 0131791036 Supplement 8S, Slide 5 Poisson Distribution Probability of n arrivals in T time periods ( T ) T Pn e n! n where = arrival rate © 2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN: 0131791036 Supplement 8S, Slide 6 Waiting Line Formulas © 2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN: 0131791036 Supplement 8S, Slide 7 P0 = Probability of 0 Units in Multiple-Channel System P0 1 M 1 1 n 1 M M n 0 n! M! M © 2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN: 0131791036 Supplement 8S, Slide 8 Single-Channel, Single-Phase Manual Car Wash Example • Arrival rate = 7.5 cars per hour • Service rate = an average of 10 cars per hour • Utilization = / = 75% © 2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN: 0131791036 Supplement 8S, Slide 9 Single-Channel, Single-Phase Automated Car Wash Example • Arrival rate = 7.5 cars per hour • Service rate = a constant rate of 10 cars per hour • Utilization = / = 75% © 2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN: 0131791036 Supplement 8S, Slide 10 Comparisons Manual wash, single server Automated wash, Manual wash, single server two servers Cars waiting 2.25 1.125 0.1227 Cars in system 3 1.875 1.517 Time waiting 18 minutes 9 minutes 1 minute Time in System 24 minutes 15 minutes 7 minutes © 2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN: 0131791036 Supplement 8S, Slide 11 Simulation Modeling Advantages • Off-line evaluation of new processes or process changes • Time compression • “What-if” analysis • Provides variance estimates in addition to averages Disadvantages • Does not provide optimal solution • More realistic the more costly and more difficult to interpret • Still just a simulation © 2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN: 0131791036 Supplement 8S, Slide 12 Monte Carlo Simulation • Maps random numbers to cumulative probability distributions of variables • Probability distributions can be either discrete (coin flip, roll of a die) or continuous (exponential service time or time between arrivals) • Random numbers 0 to 99 supplied by computer functions such as = INT(100*RAND()) in Excel. © 2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN: 0131791036 Supplement 8S, Slide 13 Monte Carlo Simulation Examples • Coin toss: Random numbers 0 to 49 for ‘heads’, 50 to 99 for ‘tails’ • Dice throw: Use Excel function = RANDBETWEEN(1,6) for throws • Service time: Use Excel function = –(avg service time)*ln(RAND()) for exponential service time © 2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN: 0131791036 Supplement 8S, Slide 14 Building a Simulation Model Four basic steps 1) Develop a picture of system to be modeled (process mapping) 2) Identify objects, elements, and probability distributions that define the system Objects = items moving through system Elements = pieces of the system 3) Determine experiment conditions (constraints) and desired outputs 4) Build and test model, capture the output data © 2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN: 0131791036 Supplement 8S, Slide 15 Simulation Example (Using single-channel, single-phase waiting line) 1) Process map 2) Time between arrivals (exponential distribution), service time (exponential distribution), objects = cars, elements = line and wash station 3) Maximum length for line, time spent in the system 4) Run model for a total of 100 cars entering the car wash, average the results for waiting time, cars in line, etc. © 2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN: 0131791036 Supplement 8S, Slide 16 ‘SimQuick’ Simulation An Excel-based application for simulating processes that allows use of constraints (see text example 8S.5)