UPEI in its 24 access buildings has 10 vending machines providing various items from water to...

  

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UPEI in its 24 access buildings has 10 vending machines providing various items from water to chips to students who study 24 hours a day. A vending machine breaks down every 5 days (Exponentially distributed). The repair service the University uses can fix two machines a day. An alternative supplier has stated they can fix the issues in half of the time but it will add an additional $50 dollars per hour to the cost of repairs for vending machines in the system either waiting or being repaired. A vending machine generates $20.00 per hour on average. The current cost of repairs for machines in the system is $30 dollars per hour. What is the cost of current repairs and based on cost and potential lost revenues should the university switch to the alternative repair supplier. Consider the repair charge time from the time they enter the system in in queue or being serviced. What would be the gain or loss of the alternative vendor be compared to the previous. The Po for the existing vendor is .3383 The Po for the alternative vendor is .6270. Use per day for both your arrival and service rates. Calculate to four digits except for the $ value where you can round up to the nearest dollar. (Use four decimals places for the arrival rate) In summary what is the downtime (lost revenue) cost for each alternative, what is the repair cost and what is the Total cost and which vendor should the university select based on cost? Clearly show input values for arrival and service. What type of model are you using? UPEI in its 24 access buildings has 10 vending machines providing various items from water to chips to students who study 24 hours a day. A vending machine breaks down every 5 days (Exponentially distributed). The repair service the University uses can fix two machines a day. An alternative supplier has stated they can fix the issues in half of the time but it will add an additional $50 dollars per hour to the cost of repairs for vending machines in the system either waiting or being repaired. A vending machine generates $20.00 per hour on average. The current cost of repairs for machines in the system is $30 dollars per hour. What is the cost of current repairs and based on cost and potential lost revenues should the university switch to the alternative repair supplier. Consider the repair charge time from the time they enter the system in in queue or being serviced. What would be the gain or loss of the alternative vendor be compared to the previous. The Po for the existing vendor is .3383 The Po for the alternative vendor is .6270. Use per day for both your arrival and service rates. Calculate to four digits except for the $ value where you can round up to the nearest dollar. (Use four decimals places for the arrival rate) In summary what is the downtime (lost revenue) cost for each alternative, what is the repair cost and what is the Total cost and which vendor should the university select based on cost? Clearly show input values for arrival and service. What type of model are you using?

Answer rating: 100% (QA)

The model we will be using is MMsN Markhovian queueing system ... View the full answer