Kolkmeyer Manufacturing Company is considering adding two machines to its manufacturing operation. This addition will bring the number of machines to nine. The president of Kolkmeyer asked for a study of the need to add a second employee to the repair operation. The arrival rate is 0.06 machines per hour for each machine, and the service rate for each individual assigned to the repair operation is 0.6 machines per hour. Compute the operating characteristics if the company retains the single-employee repair operation. If required, round your answers to four decimal places. P0 = fill in the blank 1 Lq = fill in the blank 2 L = fill in the blank 3 Wq = fill in the blank 4 hours W = fill in the blank 5 hours Compute the operating characteristics if a second employee is added to the machine repair operation. If required, round your answers to four decimal places. P0 = fill in the blank 6 Lq = fill in the blank 7 L = fill in the blank 8 Wq = fill in the blank 9 hours W = fill in the blank 10 hours Each employee is paid $30 per hour. Machine downtime is valued at $70 per hour. From an economic point of view, should one or two employees handle the machine repair operation? Explain. If required, round your answers to two decimal places.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Kolkmeyer Manufacturing Company is considering adding two machines to its manufacturing operation. This addition will bring the number of machines to nine. The president of Kolkmeyer asked for a study of the need to add a second employee to the repair operation. The arrival rate is 0.06 machines per hour for each machine, and the service rate for each individual assigned to the repair operation is 0.6 machines per hour.

Compute the operating characteristics if the company retains the single-employee repair operation. If required, round your answers to four decimal places.

P₀ = fill in the blank 1

L_q = fill in the blank 2

L = fill in the blank 3

W_q = fill in the blank 4 hours

W = fill in the blank 5 hours
Compute the operating characteristics if a second employee is added to the machine repair operation. If required, round your answers to four decimal places.

P₀ = fill in the blank 6

L_q = fill in the blank 7

L = fill in the blank 8

W_q = fill in the blank 9 hours

W = fill in the blank 10 hours
Each employee is paid $30 per hour. Machine downtime is valued at $70 per hour. From an economic point of view, should one or two employees handle the machine repair operation? Explain. If required, round your answers to two decimal places.

Cost of one employee system: $ fill in the blank 11

Cost of two employees system: $ fill in the blank 12

From an economic point of view,

should handle the machine repair operation

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