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Management Studies

NiteNiteSnoring refers its patients to SleepyHead Solutions, an outside vendor of CPAP machines. SleepyHead Solutions does not accept reservations. However, its manager has calculated that patients arrive exponentially at a rate of 2 patients per hour. Currently they employ only one technician who adjusts the settings of the prescribed CPAP machines, demonstrates the use of the equipment, and also answers questions. The technician is very experienced and he always spends exactly 23 minutes with each patient. For that reason he is paid $40 per hour. The manager estimates the cost per hour of a patient waiting to be quite expensive, specifically, $30 per hour per patient.

a. What is the average number of customers waiting to see the experienced technician?

b. How long does it take on average a patient (from the moment s/he arrived at the facility) to leave SleepyHead Solutions with a CPAP machine with the experienced technician?

c. When the experienced technician is not seeing patients, he reads technical journal articles about the CPAP machines to make sure he understands every last detail about them. In an 8 hour day, how much time on average can he spend reading?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92539612

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