Department heads at the CB university have complained repeatedly to the administration about the long lines and waiting times at the copy center. They claim that it is a waste of precious time when secretaries wait in long lines to get copies done. The administration however claims that due to a restricted budget, new copiers can’t be bought. A professor in operations management decided to analyze the situation and present a case for improving the facilities. There are 2 copy machines in the center. The professor was able to determine the arrival rate, service rate and their respective distributions. She also determined the secretaries’ salaries, and found that traffic varied from regular school days to summer days. A new copy machine costs $36,000 and annual maintenance costs are $8,000 over a 6 year period. To determine: Can the professor convince the administration that a new machine will be cost effective.

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Chapter 5, Problem 3.1CP

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Department heads at the CB university have complained repeatedly to the administration about the long lines and waiting times at the copy center. They claim that it is a waste of precious time when secretaries wait in long lines to get copies done. The administration however claims that due to a restricted budget, new copiers can’t be bought.

A professor in operations management decided to analyze the situation and present a case for improving the facilities.

There are 2 copy machines in the center. The professor was able to determine the arrival rate, service rate and their respective distributions. She also determined the secretaries’ salaries, and found that traffic varied from regular school days to summer days.

A new copy machine costs $36,000 and annual maintenance costs are $8,000 over a 6 year period.

To determine: Can the professor convince the administration that a new machine will be cost effective.

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