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Now suppose the demand has decreased to A - 30 units per hour and management is revisiting their decision. The table below gives the new

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Now suppose the demand has decreased to A - 30 units per hour and management is revisiting their decision. The table below gives the new queuing metrics for the two options: Option 1 Option 2 Utilization factor p = 0.6 p = 0.38 Mean time in the queue |E [W.] - 0.030 hours E [W.] - 0.005 hours Maintaining the above assumptions (p = 1.12 for Option 1 and p = 1 for Option 2 where the cost derivation is f (s) = ($675s x p) + $400E [L,]), would the manager choose a different option under the new demand rate? (Hint: when you are solving the cost equation, remember that, by Little's Law, E [L,] = XE [W,].)

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