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expands. In a recent planning meeting, the marketing manager made a proposal to add a second service technician when Lexmark reaches 20 customers and to

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expands. In a recent planning meeting, the marketing manager made a proposal to add a second service technician when Lexmark reaches 20 customers and to add a third service technician when Lexmark reaches 30 customers. Before making a final decision, management would like an analysis of Lexmark service capabilities. Lexmark is particularly interested in meeting the average three-hour waiting time guarantee at the lowest possible hiring cost of service technician(s). (Hint: use the spreadsheet PK formula.xIs for calculation.) (a) Interpret the description in the second paragraph of this question in terms of a typical waiting line problem, e.g., at a supermarket. Use P-K formula to estimate average customer waiting time under the current situation where there is only one service technician and 10 customers. Clearly identify the value of each parameter required for using P-K formula, such as K, V, and u. Do you agree with Lexmark management that one technician can meet the average three-hour service call guarantee? Explain. (12 marks) (b) What is your recommendation for the number of additional service technicians to hire when Lexmark expands to 20 customers? Justify your answer. (8 marks) (c) What is your recommendation for the number of service technicians to hire when Lexmark expands to 30 customers that can minimize the total hiring cost? Justify your answer. (10 marks)

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