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The supervisor at the Precision Machine Shop wants to determine the staffing policy that minimizes total operating costs. The average arrival rate at the tool crib, where tools are dispensed to the workers, is 5 machinists per hour. Each machinist's pay is $5 per hour. The supervisor can staff the crib either with a junior attendant who is paid $5 per hour and can process 12 arrivals per hour or with a senior attendant who is paid $18 per hour and can process 16 arrivals per hour. Which attendant should be selected.

Which should be selected, with a total estimated hourly cost of  _____________ . (Enter your response rounded to two decimal places.)

Operation Management, Management Studies

  • Category:- Operation Management
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