The manager of a large group of employees must decidewhether she needs another photocopying machine. Thecost of a machine is $40 per eight-hour day regardlessof whether the machine is in use. On average, fourpeople need to use the copying machine per hour. Eachperson uses the copier for an average of 10 minutes.Interarrival times and copying times are exponentiallydistributed. Employees are paid $8 per hour, and weassume that a waiting cost is incurred when a worker iswaiting in line or is using the copying machine. Howmany copying machines should be rented?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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The manager of a large group of employees must decide
whether she needs another photocopying machine. The
cost of a machine is $40 per eight-hour day regardless
of whether the machine is in use. On average, four
people need to use the copying machine per hour. Each
person uses the copier for an average of 10 minutes.
Interarrival times and copying times are exponentially
distributed. Employees are paid $8 per hour, and we
assume that a waiting cost is incurred when a worker is
waiting in line or is using the copying machine. How
many copying machines should be rented?

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