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The Whitelake Company operates a repair shop for the maintenance of its fleet of buses. At present, the shop consists of two areas, each repairing

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The Whitelake Company operates a repair shop for the maintenance of its fleet of buses. At present, the shop consists of two areas, each repairing one bus at a time. Demand for repairs is Poisson distributed with a rate of 24 buses per week. The service duration is assumed to be exponentially distributed with a mean of 15 buses per week. The fleet is assumed to be large: 3.1 A bus incurs cost of approximately $50 per day when idle. The repair shop costs about $450 per day to operate. Evaluate the average daily costs related to bus repairs? 3.2 A proposed modification of the current system is to use each of the two areas for specific purposes. The first one would treat mechanical repairs only, the second for body work only. Mechanical failures represent 60% of the total repairs and body works represents 40%. Moreover, with this set-up, repairs durations would somewhat shortened; Area One would have a repair rate of 18 buses per week and Area Two 19.2 buses per week. Also, the operating cost of the repair shop would be reduced by $40. Evaluate the daily cost associated with bus repairs in the proposed set-up. Compare it with the cost in 3.1 and what will be your recommendations. The Whitelake Company operates a repair shop for the maintenance of its fleet of buses. At present, the shop consists of two areas, each repairing one bus at a time. Demand for repairs is Poisson distributed with a rate of 24 buses per week. The service duration is assumed to be exponentially distributed with a mean of 15 buses per week. The fleet is assumed to be large: 3.1 A bus incurs cost of approximately $50 per day when idle. The repair shop costs about $450 per day to operate. Evaluate the average daily costs related to bus repairs? 3.2 A proposed modification of the current system is to use each of the two areas for specific purposes. The first one would treat mechanical repairs only, the second for body work only. Mechanical failures represent 60% of the total repairs and body works represents 40%. Moreover, with this set-up, repairs durations would somewhat shortened; Area One would have a repair rate of 18 buses per week and Area Two 19.2 buses per week. Also, the operating cost of the repair shop would be reduced by $40. Evaluate the daily cost associated with bus repairs in the proposed set-up. Compare it with the cost in 3.1 and what will be your recommendations

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