A company employs a single machine mechanic to maintain all the equipment. It is estimated that, on
Question:
A company employs a single machine mechanic to maintain all the equipment. It is estimated that, on average, 4 machines break down in an hour. The average time taken to repair a machine is estimated to be 12 minutes. The machine’s hourly output is estimated to be worth $27. The mechanic is paid at the rate of €$6 per hour.
1.Calculate the probability that more than 4 machines are in for repair at a given time.
2.The firm has an option of employing a second mechanic at the same hourly rate of $16. If employed, this second mechanic will also service the machines at the same rate as the present employee. Should the company employ the second mechanic? and show why?
Service Management Operations Strategy Information Technology
ISBN: 978-0077841201
8th edition
Authors: James Fitzsimmons, Mona Fitzsimmons, Sanjeev Bordoloi