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Q. You manage a center that performs emergency walk-in mobile phone repairs for a major phone carrier. The recent historical pattern for the number of phones that desire to be repaired each day is listed in Table 2. For instance, on 3% of the days you desire to repair 10 phone, on 4% of the days, you desire to repair 11 phones and so forth. Each phone you receive has a 28% chance, independent of all other phones, of needing a major" repair, which takes 75 min. Phones that do not desire a major" repair require only a minor" repair, which takes 45 min. . Repairs are performed by technicians who are paid $225 per day and can work up to 7 hours. If you do not have enough technicians to perform all the work needed on a given day, you can pay overtime or bring in outside technicians either way, it costs you $85 per hour, but you can purchase fractions of hours. Explain how many technicians should you keep on stand to have the lowest average cost per day? Try the values 2, 3, 4 and 5, each with a sample size of 1,000.

Operation Management, Management Studies

  • Category:- Operation Management
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