In the production shop of a company, the breakdown of the machines is found to be Poisson distributed with an average rate of 3 machines per hour. Breakdown time at one machine cost 400 birr per hour to the company. There are two choices before the company for hiring the repairmen. One of the repairmen is slow but cheap, the other is fast but expensive. The slow cheap repairman demands 200 birr per hour and will repair the broken down machines exponentially at the rate of 5 per hour. The fast expensive man demands 300 birr per hour and will repair machines exponentially at an average rate of 6 per hour. Which repairman should be hired?
In the production shop of a company, the breakdown of the machines is found to be Poisson distributed with an average rate of 3 machines per hour. Breakdown time at one machine cost 400 birr per hour to the company. There are two choices before the company for hiring the repairmen. One of the repairmen is slow but cheap, the other is fast but expensive. The slow cheap repairman demands 200 birr per hour and will repair the broken down machines exponentially at the rate of 5 per hour. The fast expensive man demands 300 birr per hour and will repair machines exponentially at an average rate of 6 per hour. Which repairman should be hired?
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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In the production shop of a company, the breakdown of the machines is found to be
Poisson distributed with an average rate of 3 machines per hour. Breakdown time at one
machine cost 400 birr per hour to the company. There are two choices before the
company for hiring the repairmen. One of the repairmen is slow but cheap, the other is
fast but expensive. The slow cheap repairman demands 200 birr per hour and will repair
the broken down machines exponentially at the rate of 5 per hour. The fast expensive
man demands 300 birr per hour and will repair machines exponentially at an average rate
of 6 per hour. Which repairman should be hired?
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