A crew of mechanics at the NCDOT repair NCDOT vehicles that break down at an average rate of λ = 4 vehicles per day. A bureaucrat in Raleigh has determined the cost associated with lost productivity due to breakdowns is $300/day. This same bureaucrat thinks it would be a good idea to have two repair crews instead of one. Vehicles still break down at the same rate of 4/day. Each crew can still service 5 /day. Assume that each crew handles half of the breakdowns. Each crew costs $400/day. The cost associated with the lost productivity of an idle vehicle is still $300/day. What is the cost of waiting for this new system?
A crew of mechanics at the NCDOT repair NCDOT vehicles that break down at an average rate of λ = 4 vehicles per day. A bureaucrat in Raleigh has determined the cost associated with lost productivity due to breakdowns is $300/day. This same bureaucrat thinks it would be a good idea to have two repair crews instead of one. Vehicles still break down at the same rate of 4/day. Each crew can still service 5 /day. Assume that each crew handles half of the breakdowns. Each crew costs $400/day. The cost associated with the lost productivity of an idle vehicle is still $300/day. What is the cost of waiting for this new system?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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A crew of mechanics at the NCDOT repair NCDOT vehicles that break down at an average rate of λ = 4 vehicles per day. A bureaucrat in Raleigh has determined the cost associated with lost productivity due to breakdowns is $300/day.
This same bureaucrat thinks it would be a good idea to have two repair crews instead of one. Vehicles still break down at the same rate of 4/day. Each crew can still service 5 /day. Assume that each crew handles half of the breakdowns. Each crew costs $400/day. The cost associated with the lost productivity of an idle vehicle is still $300/day.
- What is the cost of waiting for this new system?
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