Question: 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 ten.

Problem 15-33 (Algorithmic) Kolkmeyer

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 ten. The president of Kolkmeyer asked for a study of the need to add a second employee to the repair operation. The arrival rate is 0.07 machines per hour for each machine, and the service rate for each individual assigned to the repair operation is 0.6 machines per hour. a. Compute the operating characteristics if the company retains the single-employee repair operation. If required, round your answers to four decimal places. Po = La = L W = hours W = hours b. Compute the operating characteristics if a second employee is added to the machine repair operation. If required, round your answers to four decimal places. Po = La = L = W = hours W = hours c. Each employee is paid $25 per hour. Machine downtime at $80 per hour. an economic point 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: $ Cost of two employees system: $ From an economic point of view, should handle the machine repair operation

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!