Machinists who work at a tool-and-die plant must check out tools from a tool center. An average

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Machinists who work at a tool-and-die plant must check out tools from a tool center.† An average of ten machinists per hour arrive seeking tools. At present, the tool center is staffed by a clerk who is paid $6 per hour and who takes an average of 5 minutes to handle each request for tools. Since each machinist produces $10 worth of goods per hour, each hour that a machinist spends at the tool center costs the company $10. The company is deciding whether or not it is worthwhile to hire (at $4 per hour) a helper for the clerk.

If the helper is hired, the clerk will take an average of only 4 minutes to process requests for tools. Assume that service and interarrival times are exponential. Should the helper be hired?

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