Students arrive at the cafeteria every 2.5 minutes on average. The average of 15 students' orders per hour can be processed. The cafeteria is staffed by two workers. Assume Poisson arrival and exponential service time situation. The cafeteria opens 10 hours per day. If each student's waiting cost is $7 per hour and hiring cost to hire another worker is $20 per hour (the same service rate), should another worker 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...
icon
Related questions
Question
Students arrive at the cafeteria every 2.5 minutes on average.
The average of 15 students’ orders per hour can be processed.
The cafeteria is staffed by two workers. Assume Poisson arrival
and exponential service time situation. The cafeteria opens 10
hours per day. If each student's waiting cost is $7 per hour and
hiring cost to hire another worker is $20 per hour (the same
service rate), should another worker be hired?
Transcribed Image Text:Students arrive at the cafeteria every 2.5 minutes on average. The average of 15 students’ orders per hour can be processed. The cafeteria is staffed by two workers. Assume Poisson arrival and exponential service time situation. The cafeteria opens 10 hours per day. If each student's waiting cost is $7 per hour and hiring cost to hire another worker is $20 per hour (the same service rate), should another worker be hired?
Northeast Pennsylvania Manufacturing Company has
purchased a certain component part from Wilkes Part
Company for $80 per part. Recently, improvements in
operations and reduce product demand have cleared up
in
some
сарacity
Northeast
Pennsylvania
Manufacturing's own plant for producing component
parts. The particular part could be produced at $50 per
part, with a fixed cost of $200,000. As another
alternative, a new supplier, Scranton Part Company, is
offering volume discounts for new customers of $90 per
part for the first 1,600 parts ordered and $70 per part for
each additional unit ordered. At what volume would
each of the alternatives be preferred?
Transcribed Image Text:Northeast Pennsylvania Manufacturing Company has purchased a certain component part from Wilkes Part Company for $80 per part. Recently, improvements in operations and reduce product demand have cleared up in some сарacity Northeast Pennsylvania Manufacturing's own plant for producing component parts. The particular part could be produced at $50 per part, with a fixed cost of $200,000. As another alternative, a new supplier, Scranton Part Company, is offering volume discounts for new customers of $90 per part for the first 1,600 parts ordered and $70 per part for each additional unit ordered. At what volume would each of the alternatives be preferred?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.