A crew of mechanics at the Highway Department garage repair vehicles that break down at an average of 3 vehicles every 12 minutes (approximately Poisson in nature). The mechanic crew can service an average of 3 vehicles every 10 minutes with a repair time distribution that approximates an exponential distribution. The crew cost is approximately $100 per hour. The cost associated with lost productivity from the breakdown is estimated at $50 per hour. Which is cheaper, the existing system with one service crew or a revised system with two service crews? Note that the average waiting time for adding the second crew is 0.02.

A crew of mechanics at the Highway Department garage repair vehicles that break down at an average of 3 vehicles every 12 minutes (approximately Poisson in nature). The mechanic crew can service an average of 3 vehicles every 10 minutes with a repair time distribution that approximates an exponential distribution. The crew cost is approximately $100 per hour. The cost associated with lost productivity from the breakdown is estimated at $50 per hour. Which is cheaper, the existing system with one service crew or a revised system with two service crews? Note that the average waiting time for adding the second crew is 0.02.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

Please solve exact, acurate with complete details

A crew of mechanics at the Highway Department
garage repair vehicles that break down at an average
of 3 vehicles every 12 minutes (approximately
Poisson in nature). The mechanic crew can service
an average of 3 vehicles every 10 minutes with a
repair time distribution that approximates an
exponential distribution. The crew cost is
approximately $100 per hour. The cost associated
with lost productivity from the breakdown is
estimated at $50 per hour. Which is cheaper, the
existing system with one service crew or a revised
system with two service crews? Note that the
average waiting time for adding the second crew
is 0.02.

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