Based the average number of broken machines in the system

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Machines in a factory break down at an exponential rate of six per hour. There is a single repairman who fixes machines at an exponential rate of eight per hour. The cost incurred in lost production when machines are out of service is $10 per hour per machine.

(a) Suppose each repairman costs $15 per hour. Should the factory manager hire more repairmen? If so, how many more?

(b) The factory manager has another option: stay with one repairman but train him to work faster. A special training program can increase the repairman’s service rate to 10 per hour. However, the manager will have to pay the repairman $1 more each hour. What’s the total hourly cost of this plan?

(c) Based the average number of broken machines in the system and the average time in queue machines wait to be fixed, which plan (hiring more or training the existing one) will result in a lower total cost?

Reference no: EM132231433

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