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Three Hills provides power to a large city through a series of 200 electric generators. The company is concerned about generator failures because a breakdown
Three Hills provides power to a large city through a series of 200 electric generators. The company is concerned about generator failures because a breakdown costs about $75 per generator per hour. (The breakdown cost of $75 will be incurred for an hour as long as a generator is not working at the beginning of the hour, regardless of whether it is fixed in the hour or not.) There is one repairperson onsite at any time and the hourly wage is $30. (The hourly wage should be paid whenever the worker is onsite, regardless of he or she is working on a failed generator or not.) Management team wants to evaluate the service maintenance cost and the machine breakdown cost. There are two important uncertain factors. On the one hand, time between successive breakdowns for any single generator follows an exponential distribution with a rate of once every 400 hours or =1/400. In theory, if there are n working generators, the total number of breakdowns in one hour follows a Binomial distribution with maximum number n and success probability 1exp(). On the other hand, the number of broken-down generators that can be repaired by a repairperson in one hour ranges from zero to two according to the following distribution. Simulate the operations of the system for at least 10000 hours. Which of the following is(are) true? (Assume the default setting if not otherwise stated.) A) The average hourly total cost with a single repairperson is about $110$124. B) The average hourly total cost with two workers with the same skills is about $120$130. C) It is better to replace the repairperson with another one who receives the same salary and whose hourly repair rate is constantly one. D) Consider a second worker with the same skill. He can report for duty immediately when he is called and will get the same hourly wage only when he is onsite. Once he is onsite, he must work for 4 hours in a row and take a 2-hour break before he can be called again. Whenever there are 2 or more broken generators remaining unfixed at the beginning of an hour, the company calls him if he is available. The average hourly total cost will be about $95$100. E) None of the above
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