Question: The Quick Wash 24 hour Laundromat has 16 washing machines A

The Quick Wash 24-hour Laundromat has 16 washing machines. A machine breaks down every 20 days (exponentially distributed). The repair service with which the Laundromat contracts takes an average of 1 day to repair a machine (exponentially distributed). A washing machine averages $5 per hour in revenue. The Laundromat is considering a new repair service that guarantees repairs in 0.50 day, but it charges $10 more per hour than the current repair service.
Should the Laundromat switch to the new repair service?

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  • CreatedJuly 17, 2014
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