The average time between successive arrivals to a repair shop, which works 8 hours a day, is
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The average time between successive arrivals to a repair shop, which works 8 hours a day, is 30 minutes. The shop has one mechanic who can repair the incoming vehicles at an average rate of 3 per hour. The mechanic is paid at Rs 14 per hour while the cost of waiting time, in terms of customer dissatisfaction and lost goodwill, is Rs 20 per hour of the time spent waiting in the queue. The owner is contemplating to replace the mechanic by another one who demands Rs 18 per hour and who can repair 4 vehicles on the average. Under conditions of the single server model, calculate the total cost per day at present and the total cost per day if the present mechanic is replaced. Is it advisable to replace the existing mechanic?
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