Question: Failsafe Textiles employs three highly skilled maintenance workers who are responsible for repairing the numerous industrial robots used in its manufacturing process. A worker can

Failsafe Textiles employs three highly skilled

Failsafe Textiles employs three highly skilled maintenance workers who are responsible for repairing the numerous industrial robots used in its manufacturing process. A worker can fix one robot every nine hours on average, with an exponential distribution. An average of one robot fails every four hours, according to a Poisson distribution. Each down robot costs the company $100.00 per hour in lost production. A new maintenance worker costs the company $90.00 per hour in salary, benefits and equipment. Should the manager hire any new personnel? If so, how many people? What would you recommend to the manager, based on your analysis? O A. The manager needs to hire 2 more workers because the total expected hourly cost is minimized with a crew size of five employees at a cost of approximately $683.00 per hour. OB. The manager does not need to hire any more workers because the total expected hourly cost is minimized with a crew size of three employees. OC. The manager needs to hire 1 more worker because the total expected hourly cost is minimized with a crew size of four employees at a cost of approximately $492.80 per hour. OD. The manager needs to hire 1 more worker because the total expected hourly cost is minimized with a crew size of four employees at a cost of approximately $616.00 per hour

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 General Management Questions!