Question: A production system has three machines working in parallel. The up times of a machine is assumed to be iid, exponentially distributed with mean 3

A production system has three machines working in parallel. The up times of a machine is assumed to be iid, exponentially distributed with mean 3 hours. When a machine is down, its repair times are iid, exponentially distributed with mean 1 hour. There are two repairmen, working at the same speed. suppose that each produced part can be sold in the market place for $10. Suppose furthermore that there is a fixed hourly operating cost of $100 (this includes the salaries of the two repairmen), and a cost per machine repair of $20. Determine the long-run average hourly profit of this production system

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock 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

Students Have Also Explored These Related Law Questions!

1. Queuing Theory. The Miller Manufacturing Company owns 500 identical machines that it uses in the production of colored nylon thread for the textile industry. Machine break downs occur following a...

Consider a production system with 2 machines. When a machine is up and running, it takes a random amount of time to go down and these random "up times" for each machine are iid exponentially...

Q1 (Mark): A machine has a characteristic life of 400 hours and a median life of 192 hours, the failure rate per hour of the machine is Q2 (Mark): From question on the reliability of the machine...

answer the question clearly You are building a flight-control system for which a convincing safety case must be made. Would you assign the tasks of safety requirements engineering, test case...

OPERATONS MANAGEMENT. IE 325 Homework 1 Due April 18th, 2021 @ 17:00 Important Notes: You can work alone or in teams of 2. Don't share your work with others (cheating will be penalized). All files...

Queuing theory: ( 2 5 Points ) Use JaamSim to create a simulation of the process described in example 6 . 7 in the book Business Process Modeling, Simulation and Design . This is an example of a M /...

Q15 - (10 pts) In a manufacturing system, we have 3 parallel machines as presented below where a part can randomly choose one of the machines to be processed regardless of their status of being idle,...

Do you know how to find the cost pools for the Pelarsen Windows: Humans v. Robots? ISSN 1940-204X Pelarsen Windows: Humans v. Robots1 Shahid Ansari Babson College Paul Mulligan Babson College Alfred...

I'm looking for a full case solution on the case: Pelarsen Windows Humans vs. Robots. I've attached the full case. Please let me know, as i'd highly appreciate your help here. ISSN 1940-204X Pelarsen...

Under what circumstances can an affiliate broker in Tennessee perform real estate activities as an affiliate of more than one brokerage firm? A. When the two firms serve markets that are at least 50...

Chambers Inc. will receive GBP 2,000,000 in 270 days. The anticipation in the market is GBP will depreciate against USD. To hedge the currency risk emerging from exchange rate movement the treasure...

Listen \ table [ [ , April ] , [ Activity level in units, 1 2 , 0 0 0 , July ] , [ Variable costs,$ 1 8 , 0 0 0 , ] , [ Fixed costs, 3 5 , 0 0 0 , ] , [ Mixed costs, 4 5 , 0 0 0 ? , ] , [ Total...

Problem 14: Accounting of By-Product Midnight Oil Corporation manufactures Max product from a process that yields a by-product called YAN. The by-product requires additional processing cost of...