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Each technician can repair 4 machines per work day, on average (work day = 8 hours) [Exponential service time]. One Duipt machine needs to be
Each technician can repair 4 machines per work day, on average (work day = 8 hours) [Exponential service time]. One Duipt machine needs to be repaired once every 50 days, on average. [Poisson arrivals] Each technician is responsible for 150 machines. There are 10,000 technicians, each with annual salary $60,000. Currently, the average wait time for customers is 6 hours. The firm gets lots of complaints from customers. The managers suggest two alternatives. Service support team manager: "Each technician should be responsible for only 100 machines. Instead, we need to hire more technicians." Engineering team manager: "There is a new state-of-the-art equipment that makes the service time constant (exactly 2 hours). It costs $50,000, but it is worthy to invest, because reducing variability leads to much shorter waiting times. We have to give the equipment to all technicians. Which option do you think is better and why
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