Bamboo House Case Essay

Auburn University College of Business Assignment for course: Scmn 5710 Submitted to: Dr. Rao Submitted by: Parker Altman Date of Submission: 10/10/12 Title of Assignment: Bamboo House CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. I have also cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. Sign Parker Altman

Instructor grade: Instructor Comments: Discuss the significance of Queuing Theory. What are the different types of queuing systems? (Max 300 words – 25% of grade). Queuing theory is the mathematical study of waiting lines, using models to show results, and show opportunities, within arrival, service, and departure processes. Using queuing theory a company is able to significantly improve their customer service. There is an increasing service delay in the system as it gets more and more congested. Queuing theory provides all of the tools that one would need for analysis.

Types of Queuing systems * Single channel single phase * A truck that is unloading shipment into a single dock. * Single line multiple phase * McDonalds drive-thru where you have an order and then a pay/pickup window. * Multiple line single phase * Walgreens pharmacy with two lines where you can order or pick up. * Multiple line multiple phase * Security at an airport usually has multiple lines and multiple phases. Examine the importance of queuing system configurations (Max 300 words – 25%) There are three types of queuing configurations that are most commonly used.

The common configurations are multiple queue, single queue and first come first serve. Each configuration can be preferred depending on different situations. Multiple queue Multiple queue is where there are multiple lines or queues that you can choose from. This system is often used inside fast food restaurants and groceries where there are multiple registers and each register has its own line. Single queue A single queue is where everyone is waiting in the same line one after the other. This is used at most drive-thru’s giving the customers waiting in line satisfaction that they are being served in order.

First come first serve First come first serve is where you take a number and they are served depending on when you arrived. This gives the people arriving first priority over people arriving behind them. This is often used at a deli counter in grocery stores. Discuss how BHI is planning to implement QT and how it will all pan out using your knowledge of QT – show detailed calculations. How will this change once the demand for its product rises. (50% of grade) Bamboo house India is planning to implement a Queuing system so they will be able to keep up with increasing demand.

They are getting orders from customers online and through the phone. Implementing a queuing system will increase efficiency and in turn provide more time to ship the products. Exhibit 1 lambda(Arrival Rate)| 6| mew(Service Rate)| 6| m(Number of Channels)| 1| System Utilization| 1| Idle Rate| 0| Exhibit 1 represents the current system that they have. The arrival rate equals the service rate which means that they will have a never ending queue. A never ending queue means that they will always have a line and you cannot use queuing theory.

This system works for Bamboo house now, but with their expected increase in demand they will fall behind. Exhibit 2 lambda(Arrival Rate)| 6| mew(Service Rate)| 8| m(Number of Channels)| 1| System Utilization| 0. 75| Idle Rate| 0. 25| Avg of customers| 3| Avg time in system| 0. 5| Avg number of customers in queue| 2. 25| Avg time in queue | 0. 375| Exhibit 2 represents the new system that Bamboo house is going to implement. With an arrival rate of 6 and a service rate of 8 they are utilizing 75 percent of their system. The average person will be in the system for half a month, but they will only wait in line for 11-12 days.

If demand increases in this system then bamboo house will soon fall behind and create a constant queue. Exhibit 3 lambda(Arrival Rate)| 12| mew(Service Rate)| 8| m(Number of Channels)| 1| System Utilization| 1. 5| Exhibit 3 has an arrival rate of 12 and a service rate of 8. This system shows what will happen with an increased demand with the new system. There will be a never ending queue so we cannot use queuing theory to analyze it. Exhibit 3 will be worse than exhibit 1 because they are getting way more orders than they can handle.