Response Time

Introduction

Prof. Christian Terwiesch

Example
Physician office

- Patients arrive, on average, every five minutes

- It takes ten minutes to serve a patient
- Patients are willing to wait
What is the implied utilization of the barber shop?
How long will patients have to wait?

Prof. Christian Terwiesch

Example
Physician office

- Patients arrive, on average, every five minutes

- It takes four minutes to serve a patient
- Patients are willing to wait
What is the utilization of the barber shop?
How long will patients have to wait?

Prof. Christian Terwiesch

A Somewhat Odd Service Process

Arrival
Time

Service
Time

10

15

20

25

30

35

40

10

45

11

50

12

55

Patient

7:00

7:10

7:20
Prof. Christian Terwiesch

7:30

7:40

7:50

8:00

A More Realistic Service Process

Patient 1
Service
Time

12

18

22

25

30

36

Patient

10

45

11

51

12

55

Patient 2

Patient 5

Patient 4

Patient 7

Patient 6

Patient 9

Patient 8

Patient 11
Patient 10

Patient 12

Time
7:00

7:10

7:20

7:30

7:40

7:50

Number of cases

Arrival
Time

Patient 3

0
2 min.

3 min.

4 min.

5 min.

Service times

Prof. Christian Terwiesch

6 min.

7 min.

8:00

Variability Leads to Waiting Time

Patient

1
2
3
4
5
6
7
8
9
10
11
12

Arrival
Time

0
7
9
12
18
22
25
30
36
45
51
55

Service
Time

5
6
7
6
5
2
4
3
4
2
2
3

Service time

Wait time

7:00

7:10

7:20

7:30

7:40

7:50

8:00

7:00

7:10

7:20

7:30

7:40

7:50

8:00

5
4
3
2
Inventory
(Patients at
lab)

1
0

Prof. Christian Terwiesch

The Curse of Variability - Summary

Variability hurts flow

With buffers: we see waiting times even though there exists excess capacity
Variability is BAD and it does not average itself out
New models are needed to understand these effects

Prof. Christian Terwiesch

Response Time
Waiting time models: The
need for excess capacity

Prof. Christian Terwiesch

Modeling Variability in Flow

Flow Rate
Minimum{Demand, Capacity} = Demand = 1/a
Outflow
No loss, waiting only
This requires u<100%
Outflow=Inflow

Processing

Buffer
Inflow
Demand process is random

Processing
p: average processing time

Look at the inter-arrival times

IA1

IA2

IA3

IA4

Same as activity time and service time

Time

a: average inter-arrival time

CVa =

CVp =

St-Dev(processing times)
Average(processing times)

St-Dev(inter-arrival times)
Average(inter-arrival times)

Often Poisson distributed:

CVa = 1
Constant hazard rate (no memory)
Exponential inter-arrivals

Can have many distributions:

CVp depends strongly on standardization
Often Beta or LogNormal

Difference between seasonality and variability

Prof. Christian Terwiesch

The Waiting Time Formula

Average flow
time T

Flow rate
Inventory
waiting Iq
Inflow

Entry to system

Outflow

Begin Service

Time in queue Tq

Increasing
Variability

Departure

Service Time p

Theoretical Flow Time

Flow Time T=Tq+p

Utilization

Waiting Time Formula

utilization
Time in queue Activity Time

1 utilization

CVa2 CV p2

Variability factor
Utilization factor
Service time factor

Prof. Christian Terwiesch

100%

Example: Walk-in Doc

Newt Philly needs to get some medical advise. He knows that his Doc, Francoise, has a patient arrive every 30
minutes (with a standard deviation of 30 minutes). A typical consultation lasts 15 minutes (with a standard
deviation of 15 minutes). The Doc has an open-access policy and does not offer appointments.
If Newt walks into Francoiss practice at 10am, when can he expect to leave the practice again?

Prof. Christian Terwiesch

Summary

Even though the utilization of a process might be less than 100%, it might still require long customer wait time
Variability is the root cause for this effect
As utilization approaches 100%, you will see a very steep increase in the wait time
If you want fast service, you will have to hold excess capacity

Prof. Christian Terwiesch

Response Time
More on Waiting time models /
Staffing to Demand

Prof. Christian Terwiesch

Waiting Time Formula for Multiple, Parallel Resources

Inventory
in service Ip

Inflow

Inventory
waiting Iq

Outflow
Flow rate

Entry to system

Begin Service

Time in queue Tq

Departure

Service Time p

Flow Time T=Tq+p

Waiting Time Formula for Multiple (m) Servers

Activity time
Time in queue

utilization 2( m 1) 1

1 utilization

Prof. Christian Terwiesch

CVa2 CV p2

Example: Online retailer

Customers send emails to a help desk of an online retailer every 2
minutes, on average, and the standard deviation of the inter-arrival time
is also 2 minutes. The online retailer has three employees answering
emails. It takes on average 4 minutes to write a response email. The
standard deviation of the service times is 2 minutes.
Estimate the average customer wait before being served.

Prof. Christian Terwiesch

Summary of Queuing Analysis

Flow unit

Server
Utilization (Note: make sure <1)

Inventory
in service Ip

a p
am
m* 1
p

Time related measures

Inventory
waiting Iq

2 ( m 1) 1
p u

Tq

m 1 u
T Tq p

Outflow

Inflow

CVa2 CV p2

Inventory related measures (Flow rate=1/a)

1
* Tq
a
Ip u*m
Iq

Entry to
system

Begin
Service
Waiting Time Tq

Departure
Service Time p

Flow Time T=Tq+p

Prof. Christian Terwiesch

I I p Iq

Staffing Decision
Customers send emails to a help desk of an online retailer every 2
minutes, on average, and the standard deviation of the inter-arrival time
is also 2 minutes. The online retailer has three employees answering
emails. It takes on average 4 minutes to write a response email. The
standard deviation of the service times is 2 minutes.
How many employees would we have to add to get the average wait
time reduced to x minutes?

Prof. Christian Terwiesch

What to Do With Seasonal Data

Measure the true demand data

Apply waiting model in each slice

Slice the data by the hour (30min, 15min)

Level the demand

Assume demand is stationary within a slice

Prof. Christian Terwiesch

Service Levels in Waiting Systems

Fraction of
customers who
have to wait x
seconds or less

1
0.8

90% of calls had to

wait 25 seconds or
less

Waiting times for those customers

who do not get served immediately

0.6
0.4

Fraction of customers who get served

without waiting at all

0.2
0
0

50

100

150

200

Waiting time [seconds]

Target Wait Time (TWT)

Service Level = Probability{Waiting TimeTWT}
Example: Big Call Center
- starting point / diagnostic: 30% of calls answered within 20 seconds
- target: 80% of calls answered within 20 seconds
Prof. Christian Terwiesch

Response Time
Capacity Pooling

Prof. Christian Terwiesch

Managerial Responses to Variability: Pooling

Independent Resources
2x(m=1)

Example:
Processing time=4 minutes
Inter-arrival time=5 minutes (at each server)
m=1, Cva=CVp=1
Tq =

Pooled Resources
(m=2)

Processing time=4 minutes

Inter-arrival time=2.5 minutes
m=2, Cva=CVp=1
Tq =

Prof. Christian Terwiesch

Managerial Responses to Variability: Pooling

Waiting
Time Tq
70.00
m=1

60.00
50.00
40.00

m=2

30.00
20.00

m=5

10.00
0.00

m=10
60%

65% 70%

75%

80%

85%

90%

95%

Utilization u

Prof. Christian Terwiesch

Pooling: Shifting the Efficient Frontier

Prof. Christian Terwiesch

Summary

What is a good wait time?

Fire truck or IRS?

Prof. Christian Terwiesch

Limitations of Pooling
Assumes flexibility
Increases complexity of work-flow
Can increase the variability of service time
Interrupts the relationship with the customer / one-face-to-the-customer

Group clinics
Electricity grid / smart grid
Flexible production plants

Prof. Christian Terwiesch

The Three Enemies of Operations

Additional costs due to variability in
demand and activity times
Is associated with longer wait times
and / or customer loss
Requires process to hold excess
capacity (idle time)

Variability

Waste

Use of resources beyond what is

needed to meet customer
requirements
Not adding value to the product,
but adding cost
Reducing the performance of the
production system
7 different types of waste

Inflexibility
Work Waste Value- Work Waste Valueadding
adding

Additional costs incurred because of supply

demand mismatches
Waiting customers or
Waiting (idle capacity)

Prof. Christian Terwiesch

Customer
demand
Capacity

Response Time
Scheduling / Access

Prof. Christian Terwiesch

Managerial Responses to Variability: Priority Rules

in Waiting Time Systems
Flow units are sequenced in the waiting area (triage step)
Provides an opportunity for us to move some units forwards and some backwards
First-Come-First-Serve
- easy to implement
- perceived fairness
- lowest variance of waiting time
Sequence based on importance
- emergency cases
- identifying profitable flow units

Prof. Christian Terwiesch

Managerial Responses to Variability: Priority Rules

in Waiting Time Systems

Service times:
A: 9 minutes
B: 10 minutes
C: 4 minutes
D: 8 minutes

C
B

9 min.
19 min.

4 min.

12 min.

23 min.
Total wait time: 9+19+23=51min

21 min.
Total wait time: 4+13+21=38 min

Shortest Processing Time Rule

- Minimizes average waiting time
- Problem of having true processing times

Prof. Christian Terwiesch

Appointments

Open Access
Appointment systems

Prof. Christian Terwiesch

Response Time
Redesign the Service
Process

Prof. Christian Terwiesch

Reasons for Long Response Times

(And Potential Improvement Strategies)

Insufficient capacity on a permanent basis

=> Understand what keeps the capacity low

Demand fluctuation and temporal capacity shortfalls

Unpredictable wait times => Extra capacity / Reduce variability in demand
Predictable wait times => Staff to demand / Takt time

Long wait times because of low priority

=> Align priorities with customer value

Many steps in the process / poor internal process flow (often driven by handoffs
and rework loops)
=> Redesign the service process

http://www.minyanville.com/businessmarkets/articles/drive-thrus-emissions-fast-food-mcdonalds/5/12/2010/id/28261
Prof. Christian Terwiesch

The Customers Perspective

How much time does a patient spend on a primary care encounter?
20 minutes

Driving
Labs

Parking
Check-in
Drive home

Vitals

Waiting

PCP Appt.

Check out

Two types of wasted time:

Auxiliary activities required to get to value add activities (result of process location / lay-out)
Wait time (result of bottlenecks / insufficient capacity)

Flow Time Efficiency (or %VAT) =

Total value add time of a unit

Total time a unit is in the process

Prof. Christian Terwiesch

Process Mapping / Service Blue Prints

Customer
actions

Walk into the

branch / talk to
agent

Customer
supplies more
data

Customer
supplies more
data

Sign contracts

Collect basic
information

Request for more

data

Request for more

data

Explain final
document

Pre Approval
process; set up
workflow / account
responsibility

Pre Approval
process; set up
workflow / account
responsibility

Line of interaction

Onstage
actions
Line of visibility

Backstage
actions
Line of internal
interaction

Run formal credit

scoring model

Support
processes

Prof. Christian Terwiesch

Source: Yves Pigneur

Process Mapping / Service Blue Prints

How to Redesign a Service Process
Move work off the stage
Example: online check-in at an airport
Reduce customer actions / rely on support processes
Example: checking in at a doctors office
Instead of optimizing the capacity of a resource, try to eliminate the step altogether
Example: Hertz Gold Check-in offers no value; go directly to the car
Avoid fragmentation of work due to specialization / narrow job responsibilities
Example: Loan processing / hospital ward
If customers are likely to leave the process because of long wait times, have the wait occur
later in the process / re-sequence the activities
Example: Starbucks Pay early, then wait for the coffee
Have the waiting occur outside of a line
Example: Restaurants in a shopping malls using buzzers
Example: Appointment
Communicate the wait time with the customer (set expectations)
Example: Disney

Prof. Christian Terwiesch

Response Time
Loss Models

Prof. Christian Terwiesch

Different Models of Variability

Waiting problems
Utilization has to be less than 100%
Impact of variability is on Flow Time

Pure waiting
problem, all customers
are perfectly patient.

Loss problems
Demand can be bigger than capacity
Impact of variability is on Flow Rate

All customers
enter the process,
some leave due to
their impatience

Customers do not
enter the process once
buffer has reached a
certain limit

Same if customers are patient

Customers are lost

once all servers are
busy

Same if buffer size=0

Same if buffer size is extremely large

Variability is always bad you pay through lower flow rate and/or longer flow time
Buffer or suffer: if you are willing to tolerate waiting, you dont have to give up on flow rate

Prof. Christian Terwiesch

Analyzing Loss Systems

Resources
3 trauma bays (m=3)

Ambulances /
Helicopters

Demand Process
One trauma case comes
in every 3 hours
(a=3 hours)

Trauma center moves to

diversion status once all
servers are busy
incoming patients
are directed to
other locations

Service Process
Patient stays in trauma bay
for an average of 2 hours
(p=2 hours)

a is the interarrival time

p is the service time

Exponential interarrival times

Can have any distribution

What is Pm, the probability that all m resources are utilized?

Prof. Christian Terwiesch

Analyzing Loss Systems: Finding Pm(r)

m

Define r = p / a
Example: r= 2 hours/ 3 hours
r=0.67
Recall m=3
Use Erlang Loss Table
Find that P3 (0.67)=0.0255

r=p/a

0.10
0.20
0.25
0.30
0.33
0.40
0.50
0.60
0.67
0.70
0.75
0.80
0.90
1.00

1
0.0909
0.1667
0.2000
0.2308
0.2500
0.2857
0.3333
0.3750
0.4000
0.4118
0.4286
0.4444
0.4737
0.5000

2
0.0045
0.0164
0.0244
0.0335
0.0400
0.0541
0.0769
0.1011
0.1176
0.1260
0.1385
0.1509
0.1757
0.2000

3
0.0002
0.0011
0.0020
0.0033
0.0044
0.0072
0.0127
0.0198
0.0255
0.0286
0.0335
0.0387
0.0501
0.0625

Given Pm(r) we can compute:

Time per day that system has to deny access
Flow units lost = 1/a * Pm (r)
Prof. Christian Terwiesch

4
0.0000
0.0001
0.0001
0.0003
0.0004
0.0007
0.0016
0.0030
0.0042
0.0050
0.0062
0.0077
0.0111
0.0154

5
0.0000
0.0000
0.0000
0.0000
0.0000
0.0001
0.0002
0.0004
0.0006
0.0007
0.0009
0.0012
0.0020
0.0031

Implied utilization vs probability of having all

servers
utilized: Pooling Revisited
Probability 0.6
that all servers
are utilized 0.5
0.4
m=1
m=2

0.3
0.2

m=3

0.1

m=5

m=10

m=20

0
0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

Implied utilization

Prof. Christian Terwiesch

0.8

0.9

1.1

Erlang Loss Table

m

r = p/a

0.10
0.20
0.25
0.30
0.33
0.40
0.50
0.60
0.67
0.70
0.75
0.80
0.90
1.00
1.10
1.20
1.25
1.30
1.33
1.40
1.50
1.60
1.67
1.70
1.75
1.80
1.90
2.00
2.10
2.20
2.25
2.30
2.33
2.40
2.50
2.60
2.67
2.70
2.75
2.80
2.90
3.00
3.10
3.20
3.25
3.30
3.33
3.40
3.50
3.60
3.67
3.70
3.75
3.80
3.90
4.00

1
0.0909
0.1667
0.2000
0.2308
0.2500
0.2857
0.3333
0.3750
0.4000
0.4118
0.4286
0.4444
0.4737
0.5000
0.5238
0.5455
0.5556
0.5652
0.5714
0.5833
0.6000
0.6154
0.6250
0.6296
0.6364
0.6429
0.6552
0.6667
0.6774
0.6875
0.6923
0.6970
0.7000
0.7059
0.7143
0.7222
0.7273
0.7297
0.7333
0.7368
0.7436
0.7500
0.7561
0.7619
0.7647
0.7674
0.7692
0.7727
0.7778
0.7826
0.7857
0.7872
0.7895
0.7917
0.7959
0.8000

2
0.0045
0.0164
0.0244
0.0335
0.0400
0.0541
0.0769
0.1011
0.1176
0.1260
0.1385
0.1509
0.1757
0.2000
0.2237
0.2466
0.2577
0.2687
0.2759
0.2899
0.3103
0.3299
0.3425
0.3486
0.3577
0.3665
0.3836
0.4000
0.4156
0.4306
0.4378
0.4449
0.4495
0.4586
0.4717
0.4842
0.4923
0.4963
0.5021
0.5078
0.5188
0.5294
0.5396
0.5494
0.5541
0.5587
0.5618
0.5678
0.5765
0.5848
0.5902
0.5929
0.5968
0.6007
0.6082
0.6154

3
0.0002
0.0011
0.0020
0.0033
0.0044
0.0072
0.0127
0.0198
0.0255
0.0286
0.0335
0.0387
0.0501
0.0625
0.0758
0.0898
0.0970
0.1043
0.1092
0.1192
0.1343
0.1496
0.1598
0.1650
0.1726
0.1803
0.1955
0.2105
0.2254
0.2400
0.2472
0.2543
0.2591
0.2684
0.2822
0.2956
0.3044
0.3087
0.3152
0.3215
0.3340
0.3462
0.3580
0.3695
0.3751
0.3807
0.3843
0.3915
0.4021
0.4124
0.4191
0.4224
0.4273
0.4321
0.4415
0.4507

4
0.0000
0.0001
0.0001
0.0003
0.0004
0.0007
0.0016
0.0030
0.0042
0.0050
0.0062
0.0077
0.0111
0.0154
0.0204
0.0262
0.0294
0.0328
0.0351
0.0400
0.0480
0.0565
0.0624
0.0655
0.0702
0.0750
0.0850
0.0952
0.1058
0.1166
0.1221
0.1276
0.1313
0.1387
0.1499
0.1612
0.1687
0.1725
0.1781
0.1837
0.1949
0.2061
0.2172
0.2281
0.2336
0.2390
0.2426
0.2497
0.2603
0.2707
0.2775
0.2809
0.2860
0.2910
0.3009
0.3107

5
0.0000
0.0000
0.0000
0.0000
0.0000
0.0001
0.0002
0.0004
0.0006
0.0007
0.0009
0.0012
0.0020
0.0031
0.0045
0.0063
0.0073
0.0085
0.0093
0.0111
0.0142
0.0177
0.0204
0.0218
0.0240
0.0263
0.0313
0.0367
0.0425
0.0488
0.0521
0.0554
0.0577
0.0624
0.0697
0.0773
0.0825
0.0852
0.0892
0.0933
0.1016
0.1101
0.1187
0.1274
0.1318
0.1362
0.1392
0.1452
0.1541
0.1631
0.1691
0.1721
0.1766
0.1811
0.1901
0.1991

6
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0001
0.0001
0.0001
0.0002
0.0003
0.0005
0.0008
0.0012
0.0015
0.0018
0.0021
0.0026
0.0035
0.0047
0.0056
0.0061
0.0069
0.0078
0.0098
0.0121
0.0147
0.0176
0.0192
0.0208
0.0220
0.0244
0.0282
0.0324
0.0354
0.0369
0.0393
0.0417
0.0468
0.0522
0.0578
0.0636
0.0666
0.0697
0.0718
0.0760
0.0825
0.0891
0.0937
0.0960
0.0994
0.1029
0.1100
0.1172

7
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0001
0.0001
0.0002
0.0003
0.0003
0.0004
0.0005
0.0008
0.0011
0.0013
0.0015
0.0017
0.0020
0.0027
0.0034
0.0044
0.0055
0.0061
0.0068
0.0073
0.0083
0.0100
0.0119
0.0133
0.0140
0.0152
0.0164
0.0190
0.0219
0.0249
0.0283
0.0300
0.0318
0.0331
0.0356
0.0396
0.0438
0.0468
0.0483
0.0506
0.0529
0.0577
0.0627

8
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0001
0.0001
0.0001
0.0001
0.0002
0.0003
0.0003
0.0004
0.0005
0.0006
0.0009
0.0011
0.0015
0.0017
0.0019
0.0021
0.0025
0.0031
0.0039
0.0044
0.0047
0.0052
0.0057
0.0068
0.0081
0.0096
0.0112
0.0120
0.0130
0.0136
0.0149
0.0170
0.0193
0.0210
0.0218
0.0232
0.0245
0.0274
0.0304

9
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0001
0.0001
0.0001
0.0001
0.0001
0.0002
0.0003
0.0004
0.0004
0.0005
0.0005
0.0007
0.0009
0.0011
0.0013
0.0014
0.0016
0.0018
0.0022
0.0027
0.0033
0.0040
0.0043
0.0047
0.0050
0.0056
0.0066
0.0077
0.0085
0.0089
0.0096
0.0102
0.0117
0.0133

10
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0001
0.0001
0.0001
0.0001
0.0001
0.0002
0.0002
0.0003
0.0003
0.0004
0.0004
0.0005
0.0006
0.0008
0.0010
0.0013
0.0014
0.0016
0.0017
0.0019
0.0023
0.0028
0.0031
0.0033
0.0036
0.0039
0.0046
0.0053

Erlang Loss Table

Probability{all m servers busy}=

Prof. Christian Terwiesch

rm
m!
Pm (r )
r1 r 2
rm
1
...
1! 2!
m!

Response Time
Review

Prof. Christian Terwiesch

(My-law.com)
My-law.com is a recent start-up trying to cater to customers in search of legal services online. Unlike traditional
law firms, My-law.com allows for extensive interaction between lawyers and their customers via telephone and
the Internet. This process is used in the upfront part of the customer interaction, largely consisting of
answering some basic customer questions prior to entering a formal relationship. In order to allow customers to
interact with the firms lawyers, customers are encouraged to send e-mails to my-lawyer@My-law.com. From
there, the incoming e-mails are distributed to the lawyer who is currently on call. Given the broad skills of the
lawyers, each lawyer can respond to each incoming request.
E-mails arrive from 8 A.M. to 6 P.M. at a rate of 10 e-mails per hour (coefficient of variation
for the arrivals is 1). At each moment in time, there is exactly one lawyer on call,
that is, sitting at his or her desk waiting for incoming e-mails. It takes the lawyer, on average,
5 minutes to write the response e-mail. The standard deviation of this is 4 minutes.
a. What is the average time a customer has to wait for the response to his/her e-mail, ignoring any
transmission times? Note: This includes the time it takes the lawyer to start writing the e-mail and the actual
writing time.

b. How many e-mails will a lawyer have received at the end of a 10-hour day?
c. When not responding to e-mails, the lawyer on call is encouraged to actively pursue
cases that potentially could lead to large settlements. How much time on a 10-hour day
can a My-law.com lawyer dedicate to this activity

Prof. Christian Terwiesch

Jims Computer
Jim wants to find someone to fix his computer. PC Fixers (PF) is a local service that offers such computer
repairs. A new customer walks into PF every 10 minutes (with a standard deviation of 10 minutes). PF has a
staff of 5 computer technicians. Service times average around 40 minutes (with a standard deviation of 40
minutes).
JC1. If Jim walks into PF, how long must he wait in line before he can see a technician? (Only include the
waiting time, not any service time)

JC2. How many customers will, on average, be waiting for their computer to be fixed?

Prof. Christian Terwiesch

Real Compute
RealCompute offers real-time computing services. The company owns 4 supercomputers that can be accessed
through the internet. Their customers send jobs that arrive on average every 4 minutes (inter-arrival times are
exponentially distributed and, thus, the standard deviation of the inter-arrival times is 4 minutes).
Each job takes on average 10 minutes of one of the supercomputers (during this time, the computer cannot
perform any other work). Customers pay $20 for the execution of each job. Given the time-sensitive nature of
the calculations, if no supercomputer is available, the job is redirected to a supercomputer of a partner company
called OnComp, which charges $40 per job to Real Compute (OnComp always has supercomputer capacity
available).
RC1. What is the probability with which an incoming job can be executed by one of the supercomputers owned
by RealCompute?

RC2. How much does RealCompute pay on average to OnComp (in $s per hour)?

Prof. Christian Terwiesch

Contractor
A contractor building houses and doing renovation work has currently six projects planned for the season. Below
are the items, and the estimated times to complete them:
New construction at Springfield
Bathroom remodeling at Herne
Training time for solar roof installation
Update web-site
Renovation of deck at Haverford
New kitchen at Rosemont

- 60 days
- 10 days
- 2 days
- 6 days
- 8 days
- 20 days

Suppose the contractor starts immediately with the first project, no other projects get added to this list, and the
contractor sequences them so as to minimize the average time the project waits before it gets started. What will
the contractor be doing in 30 days from the start date of the first project?

Prof. Christian Terwiesch

Call Center
Consider a call center that has a constant staffing level. Because of increased demand in the morning,
the call center has a very high utilization in the morning and a very low utilization in the afternoon. Which
of the following will decrease the average waiting time in the call center?
(a) Add more servers
(b) Decrease the service time coefficient of variation
(c) Decrease the average service time
(d) Level the demand between the morning hours and the afternoon hours
(e) All of the above

Prof. Christian Terwiesch