Question: Machines at a production facility break down at the rate of three per hour, and the breakdowns are distributed in a Poisson manner. Downtime of

Machines at a production facility break down at the rate of three per hour, and the breakdowns are distributed in a Poisson manner. Downtime of the machines costs the company $20 per hour per machine, and each maintenance worker receives $15 per hour. One worker can service machines at an average rate of five per hour distributed exponentially.

What is the optimal maintenance crew size for servicing the machines in order to minimize the total cost?

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!

1. Assume that firm B (the potential entrant) assigns probability p (1 > p > 0) to firm As cost being $40 [and probability (1 p) to firm As cost being $60]. Show why (or why not) firm B wants to...

Question 2 50 points Machines at a production facility break down at the rate of three per hour, and the breakdowns are distributed in a Poisson manner. Downtime of the machines costs the company $20...

Show all steps please. Machines at a production facility break down at the rate of three per hour, and the breakdowns are distributed in a Poisson manner. Downtime of the machines costs the company...

Machines at a production facility break down at the rate of three per hour, and the breakdowns are distributed in a Poisson manner. Downtime costs the company $25 per hour per machine, and each...

The company Mquinas de Alimentos S. A. produces vending machines for food for a great university. The management has a constant maintenance problem, as the students hit the machines whenever they get...

Problem 1 {20 points) American Vending Inc. (AVI) supplies vended food to a large university. Because students often kick the machines out of anger and frustration, management has a constant repair...

American Vending Inc. (AVI) supplies vended food to a large university. Because students often kick the machines out of anger and frustration, management has a constant repair problem. The machines...

A company has machines that break down on an average of three per hour. and the breakdowns are distributed in a Poisson manner. Downtime costs the company $27 per hour per machine. And each...

A walk-in dental clinic at which only one dentist works is open only two days a week. During those two days he does not take appointments but rather the traffic is uniformly busy with patients...

Let A and B be n n matrices, each with n distinct eigenvalues. Prove that A and B have the same eigenvectors if and only if AB = BA.

Prove or disprove: If every vertex of a simple graph G has degree 2, then G is a cycle. Prove or disprove: The complement of a simple disconnected graph must be connected. Determine whether the...

You decide to work in Japan for the next 1 0 years, accumulate some savings, then move back to the United States and convert your savings from yen to dollars. At the time of your move, economists...

Coronado, Inc. had outstanding $6,060,000 of 12% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $8,990,000 of 10%, 15-year bonds (interest payable July 1 and...