You are asked to assess the current service model for a manufacturing line featuring 8 machines. Based on empirical data you have determined that machines have a 20% likelihood of being down and in need of repair. There are currently 2 workers capable of running and repairing machines. Each of the 8 machines can produce 18 units/hour. The overhead for running each of the 8 machines is $700 per day per machine. Each operator is paid at an hourly rate of $16. [You can assume an 8-hour work day] a. Determine the total amount of lost work time. b. Should you hire an additional worker to run the 8 machines in this manufacturing line?
You are asked to assess the current service model for a manufacturing line featuring 8 machines. Based on empirical data you have determined that machines have a 20% likelihood of being down and in need of repair. There are currently 2 workers capable of running and repairing machines. Each of the 8 machines can produce 18 units/hour. The overhead for running each of the 8 machines is $700 per day per machine. Each operator is paid at an hourly rate of $16. [You can assume an 8-hour work day] a. Determine the total amount of lost work time. b. Should you hire an additional worker to run the 8 machines in this manufacturing line?
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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You are asked to assess the current service model for a manufacturing line featuring 8 machines. Based on empirical data you have determined that machines have a 20% likelihood of being down and in need of repair. There are currently 2 workers capable of running and repairing machines. Each of the 8 machines can produce 18 units/hour. The overhead for running each of the 8 machines is $700 per day per machine. Each operator is paid at an hourly rate of $16. [You can assume an 8-hour work day]
a. Determine the total amount of lost work time.
b. Should you hire an additional worker to run the 8 machines in this manufacturing line?
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