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Exhibit 8.25 Graph of frequency of daily service minutes demanded
days; it does mean that some portion of the Engine/electrical Diagnosis demand for
6 days was not met. Although the model did not indicate the amount of service time
that was not met, as we mentioned earlier, it is a simple matter to change the cell
formulas in columns BC, BE, and BG to return the quantity rather than the indica-
tor term Stkout .The Stkout in Exhibit 8.23 cell BC14 would then be –40 minutes
–40). By comparing this time (–40) to the time requested by the last
demand in the queue we can determine if the auto receives service because it starts
before the end of the day, or if the auto is not serviced because it has not yet started.
Recall that if an arrival is being serviced at the end of the day, it will remain in ser-
vice until it is finished. This would then not represent a Stkout , but would represent
overtime to accommodate finishing the arrival.
Question three considers the appropriate use of capacity. Inez must consider the
service stock-out for Engine/electrical Diagnosis . We have already suggested that
some indications of a service stock-out are resolved by the end-of-day policy. She
must also consider the cost associated with attempting to meet demand every day for
every service type. A policy of 100% service could be a very costly goal. It may be
far better for her to use overtime to handle excess demand and also accept an occa-
sional service stock-out. Much will depend on alternative uses of the capacity she
establishes for this new service. She may be able to accommodate other clients to
handle the unused available capacity, in particular for Mechanical and Oil services
since they appear to have substantial excess capacity. Additionally, she could con-
sider making the 3 bays more flexible by permitting multiple services in a bay. This,
of course, would depend of the capital investment necessary to make the flexibility
available. These questions will require further analysis and the potential adaptation
of the model to perform different types of modeling. It is not unusual for the results
of a model to suggest the need to change the model to capture other behavior.
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