Homework SourseWhen a car is returned to his location Henry has three emplo
When a car is returned to his location, Henry has three employees who prepare the car for the next
rental. As a car arrives, one of the employees takes the car and washes it, cleans and vacuums it, and inspects it and prepares the paperwork for the next rental and returns the car to the lot. The
employees each take a car in sequence. Henry has observed the process and has observed the time
each takes to complete each step. He asks you if there is a better way to organize this part of the
operations. The information about the times (in minutes) is as follow:
Wash Vacuum Inspect & return
Beverly 22 13 11
Cameron 15 17 20
Tina 19 19 14
Each rental requires two agreement forms, one for when the car is checked out and one when it is
checked in. Henry orders these form from a local printer. The printer charges Henry $40 to set up the printer. The forms cost 50 cents each. Because of the damage to the forms and the forms becoming obsolete, it cost Henry 25% to store the forms. The printer will only accept orders in multiples of 100.
8. If the three months of data collected and presented above is indicative of all demand, how
many forms should Henry order?
9. The printer offers Henry a 10% discount if Henry orders 5000 or more form at a time. Would this be advantageous to Henry?
10. How much would it save if any?
Henry is now ready compute what do with the cars on Sunday. The other locations report the
following on-hand and needed cars. Henry will have 150 cars on-hand Saturday night.
Location North Location East Location South
On-hand 165 180 210
Needed 195 160 190
Based on past experience, the cost to move cars is:
Between And Cost
Henry Location North $12
Henry Location East $22
Henry Location South $17
Location North Location East $7
Location North Location South $28
Location East Location South $14
11. How many cars will need to be moved and what will the total cost of the move be?
12. Based on all the above computations, what would you recommend to Henry about his
operation and what changes would you propose (if any)?
Solution
Fist we have to calculate the time for each car that arrive to Henry\'s place:
Beverly........46 min
Cameron......52 min
Tina.............52 min
Total of min.150 min
Then we must calculate the number of cars that arrive daily, so:
A day have 1440 min. If we divide this quantity between 150 min. The result is 9,6
if we multiplicate 9,6 x 7 (days per week) x 4 (weeks per month) the result is =268 cars
That means that the employees clean 268 cars each month.
Then we have the cost of the printer is 40$ and we have that the printer just accepts the order if ti is a multiple of 100, so:
40 (the cost of the printer ) +25 (the cost of the forms) = 65$
but henry must pay the store for the forms and these add 25% more to the original price:
The total cost is: 81.5$ for 50 cars.
Because, as the printer only accepts orders in multiples of 100 and they are 2 forms per car, this makes 50 cars that receive forms by order.
To calculate the quantity of forms that Henry must order in 3 months. We have to calculate:
268 (quantity of cars that arrive per month) x 2 (quantity of forms per car) x 3 (quantity of months) =1608 forms
In three months henry must order 1608 forms.
Yes, the discount can be advantageous for Henry. Because if he pays 81,5$ for each order of 100 forms and the offer says that to order 5000 forms he can save 10%.
We can calculate 0,815 $ (the cost of each form) x 5000 (quantity of forms in total ) =4075$
if we calculate the 10% of 4075. We have that with the discount Henry could save 407,5$
The quantity of cars to move is 30.The location east can move 20 cars to the location north for 140$ and henry can move 10 cars to the location north for 120$. The total of the operation is 260$
