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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 3.0 hours and a standard deviation of 1.9 hours. The company's cost of the repair operation is $27 per hour. In the economic analysis of the waiting line system, Robotics uses $36 per hour cost for customers waiting during the repair process.
(a) What are the arrival rate and service rate in jobs per hour? (Round your answers to four decimal places.)
=
=
(b) Show the operating characteristics. (Round your answers to four decimal places. Report time in hours.)
Lq=
L=
wq=
w=
h h
Show the total cost per hour. (Express the total cost per hour in dollars. Round your answer to the nearest cent.)
TC=$
(c) The company is considering purchasing a computer-based equipment repair system that would enable a constant repair time of 3.0 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 $30 per hour. What effect will the new system have on the waiting line characteristics of the repair service? (Round your answers to four decimal places. Report time in hours.)
wq=,h
w=,h
Show the total cost per hour. (Express the total cost per hour in dollars. Round your answer to the nearest cent.)
TC=$
(d) Dces 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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