The total cost of the existing system with one service crew

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A crew of mechanics at the Highway Department garage repair vehicles that break down at an average of λ = 8 vehicles per day (approximately Poisson in nature). The mechanic crew can service an average of μ= 11 vehicles per day with a repair time distribution that approximates an exponential distribution. The crew cost is approximately $300 per day. The cost associated with lost productivity from the breakdown is estimated at $150 per vehicle per day (or any fraction thereof). a) Calculate the total cost of the existing system with one service crew. b) Calculate the total cost of a revised system with two service crews.

Reference no: EM131041165

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