AVR supplies food for the vending machines at a university. As the machines are mistreated by the university students, management has to repair them. The machines break down at an average of three per hour and the breakdowns are distributed in a Poisson pattern. The time the machines are down costs the company $25/hr and each maintenance worker earns $4/hr. One worker can service the machines at a rate of five per hour, exponentially distributed; two workers working together can service at seven per hour, exponentially distributed; and a crew of three can service at eight per hour, exponentially distributed. How large should the crew size be for optimum cost?

Practical Management Science
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Author:WINSTON, Wayne L.
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AVR supplies food for the vending machines at a university. As the machines are mistreated by the university students, management has to repair them. The machines break down at an average of three per hour and the breakdowns are distributed in a Poisson pattern. The time the machines are down costs the company $25/hr and each maintenance worker earns $4/hr. One worker can service the machines at a rate of five per hour, exponentially distributed; two workers working together can service at seven per hour, exponentially distributed; and a crew of three can service at eight per hour, exponentially distributed. How large should the crew size be for optimum cost? 

 

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