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Possibility of hiring an additional repair person

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Question: Tasco Oil owns a pipeline booster unit that that operates continuously. The time between breakdowns for each booster is exponential with a mean of 20 hours. The repair time is exponential with mean 3 hours. In a particular station, two repairpersons attend 10 boosters. The hourly wage for each repairperson is $18. Pipeline losses are estimated to be $30 per broken booster per hour. Tasco is studying the possibility of hiring an additional repair person.

Reference no: EM131751803

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