Acme Metal Jobshop is in the process of purchasing a multipurpose drill press. Two models, A and
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Acme Metal Jobshop is in the process of purchasing a multipurpose drill press. Two models, A and B, are available with hourly operating costs of $18 and $25, respectively. Model A is slower than model B. Queuing analysis of similar machines shows that when A is used, the average number of jobs in the queue is 4, which is 30% higher than the queue size in B. A delayed job represents lost income, which is estimated by Acme at $10 per waiting job per hour. Which model should Acme purchase?
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CA 18hr CB 25hr Queue A len...View the full answer
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