Optimal maintenance crew for servicing vending machines

Assignment Help Operation Management
Reference no: EM133379336

Question

The Acme Vending Company services vending machines for a large university on the west coast. Because students kick the machines at every opportunity out of anger and frustration, Acme management has a constant repair problem. According to MBA students who studied the machines as part of their Operations Management course, vending machines on the campus break down on an average of four per hour, and the breakdowns are distributed in a Poisson manner. Downtime costs $45/hour per machine, and each maintenance worker earns $20 per hour. Acme owns one repair truck which can be staffed by one, two, or three workers. One worker can service machines at an average rate of five per hour, distributed exponentially; two workers, working together, can service seven per hour, distributed exponentially; and a team of three workers can service eight per hour. Acme earnings have not been strong in recent times and they cannot afford another repair truck at this time. What is the optimal maintenance crew for servicing vending machines?

Reference no: EM133379336

Questions Cloud

Sandy for stealing widgets : Sandy was hired to deliver widgets on behalf of Acme, Inc., and collect payment on deliveryAcme, Inc. fired Sandy for stealing widgets.
Describe emerging trend in way : Describe the emerging trend in a way that would be understandable to a nontechnical business manager.
Employees collaborate in both physical and virtual settings : What are some ways open communication helps managers and employees collaborate in both physical and virtual settings?
What element in environment is bringing changes in plans : Mr Ahmed is the owner of a small company that sells corporate gifts through an online store. what element in the environment is bringing changes in his plans?
Optimal maintenance crew for servicing vending machines : The Acme Vending Company services vending machines for a large university on the west coast. What is the optimal maintenance crew for servicing vending machines
What is term used to describe individuals or organizations : What is the term used to describe individuals or organizations that are influenced by the actions of the firm?
Resources and capability gap to building green communities : The firm's purpose is to create value. Identify the resources and capability gap to building green communities.
Organizational strategy : Throughout your personal, professional, and academic life, you have been exposed to the concept of strategy in many ways.
Levels of subnational governments in the united states : What is one advantage and one disadvantage of having so many levels of subnational governments in the United States?

Reviews

Write a Review

Operation Management Questions & Answers

  Identify particular development project-familiar with

Identify a particular development project you are familiar with. What kinds of methods do you believe were used to assess the project? What kinds of methods do you believe should have been used to assess the project?

  Humane treatment of the people who make our products

Many types of manufacturing operations have been moved overseas in a quest for lower labor costs. Many other nations have few, if any, laws that protect workers from abuse. To what extent do you agree with the vice president's statement: "We are mora..

  On what ground could quik recover damages from retail outlet

As a result, Precise's delivery of the software is delayed, and Quik sustains $500,000 in lost profits. On what ground could Quik recover damages from Retail Outlets?

  What generation are you a member of

What generation are you a member of and what motivates you to work? What characteristics about your co-workers "get under your skin", figuratively speaking?

  What is the process capability ratio

The standard derivation of the drill press is 0.36. What is the process capability ratio?

  Write aproject portfolio essay on the issue of globalization

Write a course project portfolio essay on the issue of globalization. Give an example of a current, active website that is based in the US.

  Write letter of recommendation for you when job searching

You will eventually want to ask someone to write a letter of recommendation for you when job searching.

  Cultural relativism approach to the problem

Discuss some of the choices of the firm and the advantages and disadvantages of each. Describe how Jim takes a cultural relativism approach to the problem.

  Explain process design and conformance

Quality is primarily determined by product design, while process design and conformance to design specifications are secondary, less significant determinants of

  Calculate for configuration

calculate for configuration (i) how much inventory is held in stock at the warehouse, and for configuration

  Impact that technology has had on our society

What is the impact that technology has had on our society? What would our world be like without it?

  Beach air potential legal liability for passenger injuries

Beach Air Corp is a scheduled air carrier serving the southeastern US, Bahamas and Caribbean islands with regional turboprop aircraft. One morning, two Beach Air flights are boarding passengers on the regional airline ramp at Orlando, FL. One flight ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd