The Gotham Taxi Company has a fleet of 500 taxicabs. On any given day of use,...

 

 

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The Gotham Taxi Company has a fleet of 500 taxicabs. On any given day of use, a taxi has an 0.4% chance of breaking down. Broken-down taxis are towed overnight to the company repair shop. They return to service the day after they are fixed. Each day a taxi spends in the shop costs the company $350 in lost profits. There are three mechanics Gotham is considering hiring to work in the repair shop: Larry, Moe and Curly. Each can fix one to three taxis per day. Larry would cost the company $300 per day. On any given day, there is 20% probability he can only fix one taxi, and a 40% probability he will be able to fix either two or three. Repair Shop Moe costs $250 per day. He has an equal probability of being able to fix either one, two, or three taxis on any given day. Curly costs $200 per day. On any given day, there is a 50% chance he can fix only one cab, a 30% chance he will be able fix two, and a 20% chance that he will be able to fix three. The company may hire any combination of the three mechanics: any one, any two, or all three. Explain why you can tell, prior to performing any simulation, that the option of hiring just Curly will not be workable. Simulate each hiring combination for an operating period of 100 days each. Which policy gives the lowest average cost? What is the average number of taxis in the shop when you adopt this policy? Repair Shop Simulation approach ➤What is the decision variable? Range of values? ➤What are the input random variables? Distributions? ➤What is the output random variable? Metrics of interest? The Gotham Taxi Company has a fleet of 500 taxicabs. On any given day of use, a taxi has an 0.4% chance of breaking down. Broken-down taxis are towed overnight to the company repair shop. They return to service the day after they are fixed. Each day a taxi spends in the shop costs the company $350 in lost profits. There are three mechanics Gotham is considering hiring to work in the repair shop: Larry, Moe and Curly. Each can fix one to three taxis per day. Larry would cost the company $300 per day. On any given day, there is 20% probability he can only fix one taxi, and a 40% probability he will be able to fix either two or three. Repair Shop Moe costs $250 per day. He has an equal probability of being able to fix either one, two, or three taxis on any given day. Curly costs $200 per day. On any given day, there is a 50% chance he can fix only one cab, a 30% chance he will be able fix two, and a 20% chance that he will be able to fix three. The company may hire any combination of the three mechanics: any one, any two, or all three. Explain why you can tell, prior to performing any simulation, that the option of hiring just Curly will not be workable. Simulate each hiring combination for an operating period of 100 days each. Which policy gives the lowest average cost? What is the average number of taxis in the shop when you adopt this policy? Repair Shop Simulation approach ➤What is the decision variable? Range of values? ➤What are the input random variables? Distributions? ➤What is the output random variable? Metrics of interest?

Answer rating: 100% (QA)

The decision variable is the number of mechanics hired which can take on values of 1 2 or 3 The inpu... View the full answer