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Estimate the steady-state average cost per hour for tools

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Reference no: EM131620094

Question: Suppose that mechanics arrive randomly at a tool crib according to a Poisson process with rate it= 10 per hour. It is known that the single tool clerk serves a mechanic in 4 minutes on the average, with a standard deviation of approximately 2 minutes. Suppose that mechanics make $15.00 per hour. Estimate the steady-state average cost per hour of mechanics waiting for tools.

Reference no: EM131620094

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