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A coin-operated dry-cleaning store has five machines. The operating characteristics of the machines are such that any machine breaks down according to a Poisson process with mean breakdown rate of one per day. A repairman can fix a machine according to an exponential distribution with a mean repair time of one-half day. Currently, three repairmen are on duty. The manager has the option of replacing these three repairmen with a super-repairman whose salary is equal to the total of the three regulars, but who can fix a machine in one-third the time, that is, in one-sixth day. Should he be hired?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91874552

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