Leases one old copy machine for student self-service

Assignment Help Operation Management

Reference no: EM131791536

ABC Printing Store provides self-service machines so that students can make last-minute copies of class presentations (either that, or printing 90 copies in the computer lab!). Arrival patterns follow a Poisson distribution. The mean rate is 15 arrivals per hour for this operation. With the current equipment, the average service time is 3 minutes. However ABC is thinking of buying new machines that are available that will reduce this to an average of 2 minutes.

a) ABC currently leases one old copy machine for student self-service. What is the average number of students in system in the current system. If a new machine can be leased to replace the old machine, what will be the new average number of students in system?

b) Instead of leasing the new machine, ABC could lease a second, old machine. What will be the average number of students in system in this case?

c) The average value of time for the students requiring copying is $15 per hour. From the point of view of overall cost of leasing, the option of leasing two old machines is $3 per hour more expensive than the option of leasing one new machine. However, the ABC is mindful of customer’s waiting cost. It wants to choose the option with less total cost i.e (customer cost + service cost). Which is the better option, to lease a new machine or to lease one more old machine?

Reference no: EM131791536

Questions Cloud

Information on the specifics of the job : Imagine that the human resources department hired you to recruit new employees/volunteers. Make sure you include information on the specifics of the job,

The optimal solution to the news vendor model : The optimal solution to the news vendor model. All of the following are management considerations specific to international service operations EXCEPT

Company with both retail outlet and catalog sales division : Consider a company with both a retail outlet division (with over 100 retail stores) and a catalog sales division

Discuss risk management from the employer perspective : Drawing on the videos related to risk management, discuss risk management from the employer’s perspective related to employee health,

Leases one old copy machine for student self-service : ABC currently leases one old copy machine for student self-service. What is the average number of students in system in the current system.

Manager position from a risk management perspective : What was the manager’s position from a risk management perspective? How did you handle the conflict?

Discuss what you feel are the pros and cons of healthcare : Discuss what you feel are the pros and cons of healthcare in other countries and why people in the United States pay more for healthcare

Setting the price of the number one lip balm : Setting the Price of the Number One Lip Balm-Which of the following competitive value propositions is most appropriate for Carmax's Moisture Plus Product?

Receiving numerous complaints about your system availability : You're managing a server for a hospital and receiving numerous complaints about your system availability.

User Account

All Pages