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 $150 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 0.0
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 $150 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 0.0
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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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 $150 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 0.01.
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