1. (First System) A crew of mechanics at the NCDOT repair NCDOT vehicles that break down at an average rate of λ = 4 vehicles per day. The crew can service an average of µ = 5 vehicles per day. The crew cost is $400 per day. A bureaucrat in Raleigh has determined the cost associated with lost productivity due to breakdowns is $300/day. (This includes the entire time the vehicle is unavailable—from the time it breaks down until the time it is back on the road.) 2. (Second System) This same bureaucrat thinks it would be a good idea to have two repair crews instead of one. Vehicles still break down at the same rate of 4/day. Each crew can still service 5 /day. Assume that each crew handles half of the breakdowns. Each crew costs $400/day. The cost associated with the lost productivity of an idle vehicle is still $300/day. Which system do you recommend and why?
1. (First System) A crew of mechanics at the NCDOT repair NCDOT vehicles that break down at an average rate of λ = 4 vehicles per day. The crew can service an average of µ = 5 vehicles per day. The crew cost is $400 per day. A bureaucrat in Raleigh has determined the cost associated with lost productivity due to breakdowns is $300/day. (This includes the entire time the vehicle is unavailable—from the time it breaks down until the time it is back on the road.) 2. (Second System) This same bureaucrat thinks it would be a good idea to have two repair crews instead of one. Vehicles still break down at the same rate of 4/day. Each crew can still service 5 /day. Assume that each crew handles half of the breakdowns. Each crew costs $400/day. The cost associated with the lost productivity of an idle vehicle is still $300/day. Which system do you recommend and why?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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1. (First System)
A crew of mechanics at the NCDOT repair NCDOT vehicles that break down at an average rate of λ = 4 vehicles per day. The crew can service an average of µ = 5 vehicles per day. The crew cost is $400 per day. A bureaucrat in Raleigh has determined the cost associated with lost productivity due to breakdowns is $300/day. (This includes the entire time the vehicle is unavailable—from the time it breaks down until the time it is back on the road.)
2. (Second System)
This same bureaucrat thinks it would be a good idea to have two repair crews instead of one. Vehicles still break down at the same rate of 4/day. Each crew can still service 5 /day. Assume that each crew handles half of the breakdowns. Each crew costs $400/day. The cost associated with the lost productivity of an idle vehicle is still $300/day.
- Which system do you recommend and why?
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