The manager of a car wash must decide whether to have one or two wash lines. One line will mean a fixed cost of $5,700 a month, and two lines will mean a fixed cost of $8,550 a month. Each line would be able to process 15 cars an hour. Variable costs will be $4 per car, and revenue will be $5.95 per car. The manager projects an average demand of between 14 and 18 cars an hour. Would you recommend one or two lines? The car wash is open 250 hours a month

The manager of a car wash must decide whether to have one or two wash lines. One line will mean a fixed cost of $5,700 a month, and two lines will mean a fixed cost of $8,550 a month. Each line would be able to process 15 cars an hour. Variable costs will be $4 per car, and revenue will be $5.95 per car. The manager projects an average demand of between 14 and 18 cars an hour. Would you recommend one or two lines? The car wash is open 250 hours a month

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter12: Queueing Models

Section: Chapter Questions

Problem 59P

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