Question: The Decision Sciences Department is trying to determine whether to rent a slow or a fast copier. The department believes that an employees time is

The Decision Sciences Department is trying to determine whether to rent a slow or a fast copier. The department believes that an employee’s time is worth $15 per hour. The slow copier rents for $4 per hour, and it takes an employee an average of 10 minutes to complete copying. The fast copier rents for $15 per hour, and it takes an employee an average of six minutes to complete copying. On average, four employees per hour need to use the copying machine. (Assume the copying times and inter-arrival times to the copying machine are exponentially distributed.) Which machine should the department rent to minimize expected total cost per hour?

Step by Step Solution

3.45 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Slow Renting a copier Inputs for slow system Unit of time hour Arrival rate 4 customershour Service ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Excel file Icon

1497_6080230d7f709_695234.xlsx

300 KBs Excel File

Students Have Also Explored These Related Practical Management Science Questions!