Problemthe corner cleaners 24-hour laundromat has 16, Ask an Expert

Management Studies

Problem:

The Corner Cleaners 24-hour laundromat has 16 washing machines. A machine breaks down every 20 days (exponentially distributed). The repair service the laundromat takes an average of one day to repair a machine (exponentially distributed). A washing machine averages $5 per hour in revenue. The laundromat is considering a new repair service that guarantees repairs in 0.50 day, but they charge $10 more per hour than the current repair service.

Required:

Question 1) Currently, how long does the laundromat have to wait for its equipment to be repaired?

Question 2) What is the cost of equipment downtime?

Question 3) How long would the laundromat have to wait for repairs with the new service?

Question 4) What is the cost of downtime for the new service?

Question 5) Should the laundromat switch to the new service?

Solve the given numerical problem and illustrate step by step calculation.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91168946

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