Question

In: Statistics and Probability

Problem 15-33 (Algorithmic) Kolkmeyer Manufacturing Company is considering adding two machines to its manufacturing operation. This...

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.

  1. Compute the operating characteristics if the company retains the single-employee repair operation. If required, round your answers to four decimal places.
    P0 =
    Lq =
    L =
    Wq =  hours
    W =  hours
  2. 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 =
    Lq =
    L =
    Wq =  hours
    W =  hours
  3. Each employee is paid $30 per hour. Machine downtime is valued at $80 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: $  

    Cost of two employees system: $  

    From an economic point of view,   should handle the machine repair operation.

Solutions

Expert Solution


Related Solutions

Problem 15-33 (Algorithmic) Kolkmeyer Manufacturing Company is considering adding two machines to its manufacturing operation. This...
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 0.5 machines per hour. Compute the operating characteristics if the company...
Kolkmeyer Manufacturing Company is considering adding two machines to its manufacturing operation. This addition will bring...
Kolkmeyer Manufacturing Company is considering adding two machines to its manufacturing operation. This addition will bring the number of machines to eleven. The president of Kolkmeyer asked for a study of the need to add a second employee to the repair operation. The arrival rate is 0.05 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...
Kolkmeyer Manufacturing Company is considering adding two machines to its manufacturing operation. This addition will bring...
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 0.05 machines per hour for each machine, and the service rate for each individual assigned to the repair operation is 0.4 machines per hour. Compute the operating characteristics if the company retains the single-employee...
Kolkmeyer Manufacturing Company is considering adding two machines to its manufacturing operation. This addition will bring...
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. a. Compute the operating characteristics if the company retains the...
Kolkmeyer Manufacturing Company is considering adding two machines to its manufacturing operation. This addition will bring...
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 0.05 machines per hour for each machine, and the service rate for each individual assigned to the repair operation is 0.4 machines per hour. Compute the operating characteristics if the company retains the single-employee...
Kolkmeyer Manufacturing Company is considering adding two machines to its manufacturing operation. This addition will bring...
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 0.05 machines per hour for each machine, and the service rate for each individual assigned to the repair operation is 0.4 machines per hour. Compute the operating characteristics if the company retains the single-employee...
Kolkmeyer Manufacturing Company is considering adding two machines to its manufacturing operation. This addition will bring...
Kolkmeyer Manufacturing Company is considering adding two machines to its manufacturing operation. This addition will bring the number of machines to eleven. The president of Kolkmeyer asked for a study of the need to add a second employee to the repair operation. The arrival rate is 0.05 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...
Problem 12-14 (Algorithmic) The management of Madeira Manufacturing Company is considering the introduction of a new...
Problem 12-14 (Algorithmic) The management of Madeira Manufacturing Company is considering the introduction of a new product. The fixed cost to begin the production of the product is $30,000. The variable cost for the product is uniformly distributed between $16 and $24 per unit. The product will sell for $50 per unit. Demand for the product is best described by a normal probability distribution with a mean of 1,200 units and a standard deviation of 300 units. Develop an Excel...
Problem 12-14 (Algorithmic) The management of Madeira Manufacturing Company is considering the introduction of a new...
Problem 12-14 (Algorithmic) The management of Madeira Manufacturing Company is considering the introduction of a new product. The fixed cost to begin the production of the product is $36,000. The variable cost for the product is uniformly distributed between $20 and $28 per unit. The product will sell for $56 per unit. Demand for the product is best described by a normal probability distribution with a mean of 1,200 units and a standard deviation of 100 units. Develop an Excel...
"A company is considering two types of machines for a manufacturing process. Machine A has an...
"A company is considering two types of machines for a manufacturing process. Machine A has an immediate cost of $75,000, and its salvage value at the end of 6 years of service life is $21,000. The operating costs of this machine are estimated to be $3600 per year. Extra income taxes are estimated at $2300 per year. Machine B has an immediate cost of $43,000, and its salvage value at the end of 6 years' service is negligible. The annual...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT