Operating budget, Operation Management

The copy center in the College of Business at State University has become an increasingly contentious item among the college administration.

Department heads have complained to the associate dean about the long lines and waiting times for secretaries at the copy center. They claim it is a waste of scarce resources for the secretaries to wait in line and just talk when they could be doing more productive work.

Associate dean Hanford Burris says the limited operating budget will not allow the purchase of new copiers.

Lauren Moore, a teacher in Operations Management, assigned students to gather information about the copy center as a class project.

The report of the students says that the copy center has two machines. When secretaries arrive for a copy job, they join a queue, formed a single queue for the first available machine. Secretaries also never left the queue.

From the data gathered by students, Professor Moore was able to determine that secretaries arrived every 8 minutes for a copy job and that arrival rate was Poisson distributed. She was also able to determine that the average time to complete a job was 12 minutes, and this is exponentially distributed.

Dr. Moore determined that a secretary's average salary is $8.50 per hour. From her academic calendar, she added up the actual days in the year when the college and departmental offices were open and found there were 247. It then occurred to her that during the summer months, the workload is much less. The summer included about 70 days.

During the summer, Dr. Moore expected that the copy center traffic would be half of what it is during the normal year. She speculated that the average time of copying job would remain the same.

Professor Moore next called a local office supply firm to check the prices of copiers. A new copier of the type in the copy center would cost $36, 000. It would also require $8, 000 per year for maintenance and would have a normal useful life of 6 years.

Posted Date: 2/21/2013 1:24:35 AM | Location : United States







Related Discussions:- Operating budget, Assignment Help, Ask Question on Operating budget, Get Answer, Expert's Help, Operating budget Discussions

Write discussion on Operating budget
Your posts are moderated
Related Questions
Explain Fixed Cost. Fixed Cost: Cost may be described as the amount of expenditure incurred on, or attributable to a specified thing. Fixed costs are those costs that tend t

Discuss the legal and ethical issues surrounding Solyndra, the California based solar panel manufacturer. You will need to research the company through the University library. Inco

Identify the process strategy you will utilize at CPC and explain why this strategy is appropriate for your business. Create a process flow chart for CPC. Identify opportunities to

Purpose of Research Design: Any research design has two basic purposes. a. To provide answers to research questions as validly objectively accurately and econom

Most day-to-day interaction between labour and management involves the: Answer (1) national union. (2) International union. (3) Industrial union. (4) Local union.

SERVQUAL Model - Consumption of Service Products In later publications PZB, having analysed their data using factor analysis, reduced the original ten dimensions to the follow

what are the functions of finance, management and marketing in operations?

Activity Instructions There are two parts to this assignment. Part 1: Revise the previous flowchart you created based on any new or different information you gleaned during the las

Transferring some part of an organisation's activities to a subsidiary in another country is an example of  offshoring.