Job 1 OM Group 20

 Essay on Assignment you OM Group 20

Operation Management

lecture numbersemester

0886-WS 2014/15

Assignment you – Application of Little's Legislation

Date: 15/12/14

Handed in by:

Tomova, Veselina (h1451173)

Cavagoglu, Deniz (………….. )

Handed down in for:

Univ. Prof. Werner Jammernegg


1 ) Problem – Z Car Rental3

2 . Solution3

1 . Problem -- Z Rental cars

Z . Car Rental rents an average of 95 cars daily. Its customers keep a car for typically 2 days and nights for €70/day. Z Rental cars keeps typically 6 times of demand on the ready-for-rent building. For ease, let us consider one rental location. The moment customers returning a car, they drop that off with the returns region, which has typically 100 autos. A quick verify at the results area decides whether the car needs maintenance or not. On average, 20% of the vehicles need vehicle repairs while 80 percent do not. Vehicles needing fixes are delivered to the maintenance area, which has an average products on hand of 100 cars. Most cars happen to be taken to the cleaning area either directly or after staying repaired, which includes an average inventory of two hundred cars. Following cleaning and/or repairs, autos are came back to the ready-for-rent parking lot. Every repair costs €100 every car whilst each washing costs €5 per car.

Z Car Rental leases its autos at €200 per month per car. It has 10 workers on the payroll: it operates two almost eight hour shifts per day of 5 workers (1 customer facing, one particular cleaning, 1 repair, one particular receive& examine, 1 supervisor). Average totally loaded salary is €15/hour. Z Rental cars pays regarding €12, 000 per month in facility hire, including programs. Assume that a month has 30 days.

1 ) Draw the procedure flow plan and identify throughput, products on hand and movement time at each stage. installment payments on your What income does Z . earn each week with the current system? several. Z is comparing two possible advancements:

Reduce average inventory in the cleaning area via 200 to 100. Reducing the repair rate to 10%.

Assume that the effort that is required every time is the same. Which transform do you think could be more effective and why?

2 . Remedy

Ready for Hire Area


Clean Location

Repair Location

Return Area

Fixed Costs


Lease +Utilities








twelve employees daily / two 8 hour shifts/ 12-15 € pro hour

doze, 000 € per month = 3, 000€/week

200 € per car per month

Products on hand

600 vehicles

200 vehicles

200 cars

100 automobiles

100 automobiles

Flow Time

6 days and nights

2 days

2 days and nights

5 times

1 day

Throughput (Customer) sama dengan Z Rental cars rents typically 100 cars per day; Throughtput ( Clean Area) = Throughtput (Repair Area)+ Throughput (Return Area) = twenty +80 = 100 Throughtput (Repair Area) = twenty percent of the autos need vehicle repairs = 100*0. 2 sama dengan 20 Throughput (Return Area) = 100 cars

Products on hand (Clean Area) = two hundred cars

Inventory (Repair Area) = 95 cars

Products on hand (Return Area) = 75 cars

Inventory (Customer) sama dengan 2*100=200 autos

Inventory (Ready for Rent) = six hundred cars

In line with the Little's Legislation: I sama dengan R*T

exactly where: I – Inventory

3rd there�s r – Throughput

T – Flow Time

Flow Period =

T(Ready pertaining to Rent) sama dengan

Capital t (Customers) =

T(Clean Area) =

Big t (Repair Area) =

T (Return Area) =

(Last page)





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