Northeast Pennsylvania Manufacturing Company has purchased a certain component part from Wilkes Part Company for $80...

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Northeast Pennsylvania Manufacturing Company has purchased a certain component part from Wilkes Part Company for $80 per part. Recently, improvements in operations and reduce product demand have cleared up in some сарacity Northeast Pennsylvania Manufacturing's own plant for producing component parts. The particular part could be produced at $50 per part, with a fixed cost of $200,000. As another alternative, a new supplier, Scranton Part Company, is offering volume discounts for new customers of $90 per part for the first 1,600 parts ordered and $70 per part for each additional unit ordered. At what volume would each of the alternatives be preferred? Students arrive at the cafeteria every 2.5 minutes on average. The average of 15 students’ orders per hour can be processed. The cafeteria is staffed by two workers. Assume Poisson arrival and exponential service time situation. The cafeteria opens 10 hours per day. If each student's waiting cost is $7 per hour and hiring cost to hire another worker is $20 per hour (the same service rate), should another worker be hired? Northeast Pennsylvania Manufacturing Company has purchased a certain component part from Wilkes Part Company for $80 per part. Recently, improvements in operations and reduce product demand have cleared up in some сарacity Northeast Pennsylvania Manufacturing's own plant for producing component parts. The particular part could be produced at $50 per part, with a fixed cost of $200,000. As another alternative, a new supplier, Scranton Part Company, is offering volume discounts for new customers of $90 per part for the first 1,600 parts ordered and $70 per part for each additional unit ordered. At what volume would each of the alternatives be preferred? Students arrive at the cafeteria every 2.5 minutes on average. The average of 15 students’ orders per hour can be processed. The cafeteria is staffed by two workers. Assume Poisson arrival and exponential service time situation. The cafeteria opens 10 hours per day. If each student's waiting cost is $7 per hour and hiring cost to hire another worker is $20 per hour (the same service rate), should another worker be hired?

Answer rating: 100% (QA)

Solution Arrival rate A 6025 24 per hour Service rate H 15 per hour Number of servers staff M 2 Wait... View the full answer