Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The Robotics Manufacturing Company operates an equipment repair business where emergency jobs arrive randomly at the rate of two jobs per 8 - hour day.
The Robotics Manufacturing Company operates an equipment repair business where emergency jobs arrive randomly at the
rate of two jobs per hour day. The company's repair facility is a singleserver system operated by a repair technician. The
service time varies, with a mean repair time of hours and a standard deviation of hours. The company's cost of the
repair operation is $ per hour. In the economic analysis of the waiting line system, Robotics uses $ per hour cost for
customers waiting during the repair process.
a What are the arrival rate and service rate in jobs per hour? Round your answers to four decimal places.
b Show the operating characteristics. Round your answers to four decimal places. Report time in hours.
Show the total cost per hour. Express the total cost per hour in dollars. Round your answer to the nearest cent.
$
c The company is considering purchasing a computerbased equipment repair system that would enable a constant
repair time of hours. For practical purposes, the standard deviation is Because of the computerbased system,
the company's cost of the new operation would be $ per hour. What effect will the new system have on the waiting
line characteristics of the repair service? Round your answers to four decimal places. Report time in hours.
Show the total cost per hour. Express the total cost per hour in dollars. Round your answer to the nearest cent.
$
d Does paying for the computerbased system to reduce the variation in service time make economic sense? The firm's
director of operations rejected the request for the new system because the hourly cost is $ higher and the mean
repair time is the same. Do you agree? How much in dollars will the new system save the company during a hour
work week? Round your answer to the nearest cent. Enter if there are no savings.
The average savings over a hour work week amount to $
Based on this, the director's argument
should be
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started