Operations Management

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Due Date: Thursday, February 25th, 2016

Each group member must check the box below and record her/his student number to indicate that they have read and abide by the statements above.

[√        ]    1002848412    _         [√]     1002848403    

Solutions (Detailed calculations are attached in Appendix.doc.)

1. 432 passengers can be transported per hour from Pearson to Toronto Union Station.

1. At least 12 vehicles have to be bought to provide the planned service.

1. a. As the following illustration:

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b. According to the inventory build-up analysis, the minimum number of seats should be the maximum number of possible inventory (waiting passengers), which is 258 at 11:30. So the waiting area should at least have 258 seats for this 2-hour interval.

c. During this 2-hour interval, the average number of passengers waiting at Terminal 1 is 100.875.

d. Average waiting time of the passengers in the UP Express station at Terminal 1 during this 2-hour interval is 9.8897 minutes.

1. a. As the following illustration:

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b. The implied volatilities for four periods are 108.33%, 58.33%, 141.67%, 25.00%.

c. The long-run average utilization is 70.83% and average waiting time per passenger is 0.7922 hours.

d. The long-run average utilization decreases by 5.9%(to 64.93%) and average waiting time per passenger decreases by 0.5361 hours (to 0.2561 hours).

e. According to Little’s Law, average waiting time= average inventory level/ average throughput rate. Therefore, in order to cut the waiting time, one must decrease the average inventory level or increase the average throughput rate. And the following two ideas can achieve it.