Problem 15-33 (Algorithmic)

Kolkmeyer Manufacturing Company is considering adding two machines to its manufacturing operation. This addition will bring the number of machines to nine. The president of Kolkmeyer asked for a study of the need to add a second employee to the repair operation. The arrival rate is 0.06 machines per hour for each machine, and the service rate for each individual assigned to the repair operation is 0.6 machines per hour.

Compute the operating characteristics if the company retains the single-employee repair operation. If required, round your answers to four decimal places.

P0 = fill in the blank

Lq = fill in the blank

L = fill in the blank

Wq = fill in the blank hours

W = fill in the blank hours

Compute the operating characteristics if a second employee is added to the machine repair operation. If required, round your answers to four decimal places.

P0 = fill in the blank

Lq = fill in the blank

L = fill in the blank

Wq = fill in the blank hours

W = fill in the blank hours

Each employee is paid $25 per hour. Machine downtime is valued at $85 per hour. From an economic point of view, should one or two employees handle the machine repair operation? Explain. If required, round your answers to two decimal places.

Cost of one employee system: $ fill in the blank 11

Cost of two employees system: $ fill in the blank 12

From an economic point of view,...........(one employee or two employee) should handle the machine repair operation.