Operations Management - Calculate the Average Time It Takes a Plane to Clear the Runway Once It Has Notified the Airport That It Is in the Vicinity and Wants to Land

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OPERATIONS MANAGEMENT

Ram Dubey recently purchased a chain of dry cleaners in North Uttar Pradesh. Although the business is making a modest profit now, Ram suspects that if he invests in a new press, he could recognize a substantial increase in profits. The new press costs $ 15,400 to purchase and install and can press 40 shirts an hour or 320 per day. Ram estimates that with the new press, it will cost $ 0.25 to launder and press each shirt, customers are charged $ 1.10 per shirt.

Q1) How many shirts will Ram have to press to break even?

Q2) So far Ram’s workload has varied from 50 to 200 shirts a day. How long would it take to break even on the new press at the low demand estimate? At the high demand estimate?

Q3) If Ram cuts his price to $ 0.99 a shirt, he expects to be able to stabilize his customer base at 250 shirts per day. How long would it take to break even at the reduced price of $ 0.99?

Q4) Should Ram cut his price and buy the new press?

CASE STUDY : 2

The Peachtree Airport in Atlanta serves light aircraft. It has a single runway and one air traffic controller to land planes. It takes an airplane and minutes to land and clear the runway (exponentially distributed) planes arrive at the airport at the rate of 5 per hour (Poisson distributed).

Q1) Determine the average number of planes that will stack up waiting to land?

Q2) Find the average time a plane must wait in line before it can lead?

Q3) Calculate the average time it takes a plane to clear the runway once it has notified the airport that it is in the vicinity and wants to land?

Q4) The FAA has a rule that an air traffic controller can, on the average, land planes a maximum of 45 minutes out of every hour. There must be 15 minutes of idle time available to relieve the tension. Will this airport have to hire an extra air traffic...