A mil ling department has 10 machines. Each ma chine operates an average of eight hours before requiring adjustment, which takes an average of two hours. Both distributions are Exponential. While running, each machine can produce 40 pieces an hour.
a. With one adjuster, what is the net average hourly output per machine?
b. If machine downtime cost is $80 per hour and adjuster cost is $20 per hour* how many adjusters would be optimal?