Question: An ARENA program was run to estimate the average cost of running a production line. 10 replications were performed. Statistics were collected on a number
An ARENA program was run to estimate the average cost of running a production line. 10 replications were performed. Statistics were collected on a number of parameters. The results are displayed in the table below. There are 5 operators in the system and each operator is paid at the rate of $25 per hour. The overhead costs are $90/hr. The material cost is $20 per piece (part).
The table below shows the throughput computed from each replication, i.e., the number of parts produced per hour. The average cost per hour for this system is ($/hr):
| Replication | Throughput |
| 1 | 10.4 |
| 2 | 12.1 |
| 3 | 13.2 |
| 4 | 9.5 |
| 5 | 10.3 |
| 6 | 10.6 |
| 7 | 11.2 |
| 8 | 11.4 |
| 9 | 10.5 |
| 10 | 10.9 |
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