In a small handloom mill there are four looms working continuously. Occasionally, the looms breakdown for which a repairman is called. On an average the service requirement is at 10-hour intervals which follows an exponential distribution. The average repair time of the looms is Rs 20 per hour and the cost of the mechanic is Rs 50 per day. What is the cost of the present system? Is it desirable to have two mechanics? Should we allocate two looms to each mechanic or all the four looms should be allocated to the two mechanics together?

Answer rating: 100% (QA)

To determine the cost of the present system and evaluate the desirability of having two mechanics we need to analyze the current system and compare it with the proposed alternative scenarios Lets calc... View the full answer