Machines come to a service center for a regular repair service, the arrival process is Poisson...

  

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Machines come to a service center for a regular repair service, the arrival process is Poisson with arrival rate of 10 per hour, each machine can make $500 profit per hour, the service charge is $200 per hour per machine, what should the service rate should be in order to minimize the total cost? What is the minimum cost? Machines come to a service center for a regular repair service, the arrival process is Poisson with arrival rate of 10 per hour, each machine can make $500 profit per hour, the service charge is $200 per hour per machine, what should the service rate should be in order to minimize the total cost? What is the minimum cost?

Answer rating: 100% (QA)

To minimize the total cost we need to find the optimal service rate that balances the cost of servin... View the full answer