31. A steel fabrication plant was considering the installation of a second tool crib in the plant to save walking time of the skilled craftsmen who check out equipment at the tool cribs. The Poisson/

exponential assumptions about arrivals are justified in this case. The time of the craftsman is valued at Rs 20 per hour. The current facility receives an average often calls per hour, with two cribs, each with average five calls per hour. Currently there are two attendants, each of whom services one craftsman at a time, each has a service rate of eight craftsman per hour. Each could do just as well in a separate tool crib. There would be added average inventory costs over the year of Rs 2/hour with the separate tool cribs. However, each craftsman would require six minutes less walking time per call. Evaluate the proposal to set up a new crib so that each attendant would run one crib. (MBA, Delhi, 2003)