The Johnson Manufacturing Company operates six identical machines that are serviced by a single technician when they

Question:

The Johnson Manufacturing Company operates six identical machines that are serviced by a single technician when they break down. Breakdowns occur according to the Poisson distribution and average 0.03 breakdowns per machine operating hour. Average repair time for a machine is five hours and follows the exponential distribution.
(a)
What percentage of the technician’s time is spent repairing machines?
(b) On average, how long is a machine out of service because of a breakdown?
(c) On average, how many machines are out of service?
(d) Johnson wants to investigate the economic feasibility of adding a second technician. Each technician costs the company $18 per hour. Each hour of machine downtime costs $120. Should a second technician be added?
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Managerial Decision Modeling With Spreadsheets

ISBN: 718

3rd Edition

Authors: Nagraj Balakrishnan, Barry Render, Jr. Ralph M. Stair

Question Posted: