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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