Question: A process manager is considering automating a bottleneck operation. The operation receives between three and nine jobs per hour in a random fashion. The cost

A process manager is considering automating a bottleneck operation. The operation receives between three and nine jobs per hour in a random fashion. The cost of waiting associated with the jobs is estimated at $2.20 per hour. The team’s equipment choices are specified in Table 7.12. Develop a spreadsheet simulation to compare the estimated hourly cost of the three alternatives. Hint: Uniform random numbers between a and b can be generated in Excel with the formula

= RAND( ) * (b −

a) +

a. Random numbers from a normal distribution with a mean m and standard deviation s can be generated in Excel with the formula

= NORM.INV(RAND( ),m, s). (Simulate 500 jobs in each case.)

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