What are the arrival rate and service rate in jobs per hour

Assignment Help Operation Management

Reference no: EM13918659

The Robotics Manufacturing Company operates an equipment repair business where emergency jobs arrive randomly at the rate of three jobs per 8-hour day. The company's repair facility is a single-channel system operated by a repair technician. The service time varies, with a mean repair time of 2 hours and a standard deviation of 1.5 hours. The company's cost of the repair operation is $28 per hour. In the economic analysis of the waiting line sys- tem, Robotics uses $35 per hour cost for customers waiting during the repair process.

a. What are the arrival rate and service rate in jobs per hour?

b. Show the operating characteristics including the total cost per hour.

c. The company is considering purchasing a computer-based equipment repair system that would enable a constant repair time of 2 hours. For practical purposes, the stan- dard deviation is 0. Because of the computer-based system, the company's cost of the new operation would be $32 per hour. The firm's director of operations said no to the request for the new system because the hourly cost is $4 higher and the mean repair time is the same. Do you agree? What effect will the new system have on the waiting line characteristics of the repair service?

d. Does paying for the computer-based system to reduce the variation in service time make economic sense? How much will the new system save the company during a 40-hour work week?

Reference no: EM13918659

Questions Cloud

Assessment preparation checklist : Study the topics "The Mean and Standard Deviation of Sample Mean" and "Estimating a Population Mean" in the Module 3 lesson. These topics will help you learn how to calculate the mean and standard deviations of the sample mean and estimate a popul..

Income statement information for caroline : selected balance sheet and income statement information for Caroline Supply Co. (in millions) to compute asset turnover (AT) to the nearest hundredth of a percent

Able to create a compelling vision for the organization : Leaders today must be able to create a compelling vision for the organization. They also must be able to create an aligned strategy and then execute it. Visions have two parts, the envisioned future and the core values that support that vision of ..

Discuss relationship between creativity, intrapreneurship : Discuss the relationship between creativity, intrapreneurship, and innovation. Additionally, discuss why these elements are vital to building a knowledge creating organization. Over 300 words with reference.

What are the arrival rate and service rate in jobs per hour : What are the arrival rate and service rate in jobs per hour? Show the operating characteristics including the total cost per hour.

Determine the significance level of the sample : 1. Restate the question as a research hypothesis and a null hypothesis about the population. 2. Set your significance level at .05 3. Determine the significance level of the sample's ANOVA, which "Sig." identifies exactly.

Find out the sample mean percentage : Use a calculator with mean and sample standard deviation keys to find the sample mean percentage x and the sample standard deviation s. (Round your answers to one decimal place.)

Paid the sales tax payable : The trial balance of Pacilio Security Services Inc. as of January 1, 2020, had the following normal balances:

Five-to seven-page financial statement analysis of public : Write a five-to seven-page financial statement analysis of a public company, formatted according to APA style as outlined in the Ashford Writing Center. In this analysis you will discuss the financial health of this company with the ultimate goa..

User Account

All Pages