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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 8-hour day. The company's repair facility is a single-server system operated by a repair technician. The
service time varies, with a mean repair time of 3.2 hours and a standard deviation of 2.0 hours. The company's cost of the
repair operation is $26 per hour. In the economic analysis of the waiting line system, Robotics uses $37 per hour cost for
customers waiting during the repair process.
(a) What are the arrival rate and service rate in jobs per hour? (Round your answers to four decimal places.)
=
=
(b) Show the operating characteristics. (Round your answers to four decimal places. Report time in hours.)
Lq=
L=
wq=h
W=h
Show the total cost per hour. (Express the total cost per hour in dollars. Round your answer to the nearest cent.)
TC=$
(c) The company is considering purchasing a computer-based equipment repair system that would enable a constant
repair time of 3.2 hours. For practical purposes, the standard deviation is 0. Because of the computer-based system,
the company's cost of the new operation would be $29 per hour. What effect will the new system have on the waiting
line characteristics of the repair service? (Round your answers to four decimal places. Report time in hours.)
wq=h
w=h
Show the total cost per hour. (Express the total cost per hour in dollars. Round your answer to the nearest cent.)
TC=$
(d) Does paying for the computer-based 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 $3 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 40-hour
work week? (Round your answer to the nearest cent. Enter 0 if there are no savings.)
The average savings over a 40-hour work week amount to $
. Based on this, the director's argument
should be
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