The supervisor at the Precision Machine Shop wants to determine the staffing policy that minimizes total operating
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The supervisor at the Precision Machine Shop wants to determine the staffing policy that minimizes total operating costs. The average arrival rate at the tool crib, where tools are dispensed to the workers, is eight machinists per hour. Each machinist’s pay is $30 per hour. The supervisor can staff the crib either with a junior attendant who is paid $15 per hour and can process 12 arrivals per hour or with a senior attendant who is paid $30 per hour and can process 16 arrivals per hour. Which attendant should be selected, and what would be the total estimated hourly cost?
Related Book For
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
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