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?
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
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
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?

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?
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