The Robotics Manufacturing Company operates an equipment repair business where emergency jobs arrive randomly at the rate of two jobs per 8-hour day. The company's repair facility is a single-server system operated by a repair technician. The service time varies, with a mean repair time of 3.0 hours and a standard deviation of 2.1 hours. The company's cost of the repair operation is $26 per hour. In the economic analysis of the waiting line system, Robotics uses $37 per hour cost for customers waiting during the repair process. (a) What are the arrival rate and service rate in jobs per hour? (Round your answers to four decimal places.) λ = u= (b) Show the operating characteristics. (Round your answers to four decimal places. Report time in hours.) La L = W₂ = W = h Show the total cost per hour. (Express the total cost per hour in dollars. Round your answer to the nearest cent.) TC = $ (c) The company is considering purchasing a computer-based equipment repair system that would enable a constant repair time of 3.0 hours. For practical purposes, the standard deviation is 0. Because of the computer-based system, the company's cost of the new operation would be $29 per hour. What effect will the new system have on the waiting line characteristics of the repair service? (Round your answers to four decimal places. Report time in hours.) h W = 9 W = Show the total cost per hour. (Express the total cost per hour in dollars. Round your answer to the nearest cent.) TC=$ (d) Does paying for the computer-based system to reduce the variation in service time make economic sense? The firm's director of operations rejected the request for the new system because the hourly cost is $3 higher and the mean repair time is the same. Do you agree? How much (in dollars) will the new system save the company during a 40-hour work week? (Round your answer to the nearest cent. Enter 0 if there are no savings.) The average savings over a 40-hour work week amount to $[ . Based on this, the director's argument should be ---Select--- .
The Robotics Manufacturing Company operates an equipment repair business where emergency jobs arrive randomly at the rate of two jobs per 8-hour day. The company's repair facility is a single-server system operated by a repair technician. The service time varies, with a mean repair time of 3.0 hours and a standard deviation of 2.1 hours. The company's cost of the repair operation is $26 per hour. In the economic analysis of the waiting line system, Robotics uses $37 per hour cost for customers waiting during the repair process. (a) What are the arrival rate and service rate in jobs per hour? (Round your answers to four decimal places.) λ = u= (b) Show the operating characteristics. (Round your answers to four decimal places. Report time in hours.) La L = W₂ = W = h Show the total cost per hour. (Express the total cost per hour in dollars. Round your answer to the nearest cent.) TC = $ (c) The company is considering purchasing a computer-based equipment repair system that would enable a constant repair time of 3.0 hours. For practical purposes, the standard deviation is 0. Because of the computer-based system, the company's cost of the new operation would be $29 per hour. What effect will the new system have on the waiting line characteristics of the repair service? (Round your answers to four decimal places. Report time in hours.) h W = 9 W = Show the total cost per hour. (Express the total cost per hour in dollars. Round your answer to the nearest cent.) TC=$ (d) Does paying for the computer-based system to reduce the variation in service time make economic sense? The firm's director of operations rejected the request for the new system because the hourly cost is $3 higher and the mean repair time is the same. Do you agree? How much (in dollars) will the new system save the company during a 40-hour work week? (Round your answer to the nearest cent. Enter 0 if there are no savings.) The average savings over a 40-hour work week amount to $[ . Based on this, the director's argument should be ---Select--- .
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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Transcribed Image Text:The Robotics Manufacturing Company operates an equipment repair business where emergency jobs arrive randomly at the rate of two jobs per 8-hour day. The company's repair facility is a single-server
system operated by a repair technician. The service time varies, with a mean repair time of 3.0 hours and a standard deviation of 2.1 hours. The company's cost of the repair operation is $26 per hour. In the
economic analysis of the waiting line system, Robotics uses $37 per hour cost for customers waiting during the repair process.
(a) What are the arrival rate and service rate in jobs per hour? (Round your answers to four decimal places.)
λ =
μ =
(b) Show the operating characteristics. (Round your answers to four decimal places. Report time in hours.)
L =
9
L =
W₁ =
Wa
W =
h
Show the total cost per hour. (Express the total cost per hour in dollars. Round your answer to the nearest cent.)
TC = $
(c) The company is considering purchasing a computer-based equipment repair system that would enable a constant repair time of 3.0 hours. For practical purposes, the standard deviation is 0. Because of
the computer-based system, the company's cost of the new operation would be $29 per hour. What effect will the new system have on the waiting line characteristics of the repair service? (Round your
answers to four decimal places. Report time in hours.)
W =
9
W =
h
h
Show the total cost per hour. (Express the total cost per hour in dollars. Round your answer to the nearest cent.)
TC = $
(d) Does paying for the computer-based system to reduce the variation in service time make economic sense? The firm's director of operations rejected the request for the new system because the hourly
cost is $3 higher and the mean repair time is the same. Do you agree? How much (in dollars) will the new system save the company during a 40-hour work week? (Round your answer to the nearest
cent. Enter 0 if there are no savings.)
The average savings over a 40-hour work week amount to $
Based on this, the director's argument should be ---Select--- .
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