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Trosper Tire Company has decided to hire a new mechanic to handle all tire changes for customers ordering a new set of tires. Two mechanics are available for the job. One mechanic has limited experience and can be hired for $7 per hour. It is expected that this mechanic can service an average of three customers per hour. A mechanic with several years of experience is also being considered for the job. This mechanic can service an average of four customers per hour, but must be paid $10 per hour. Assume that customers arrive at the Trosper garage at the rate of two per hour. a) Compute waiting-line operating characteristics for each mechanic b) If the company assigns a customer waiting cost of $15 per hour, which mechanic provides the lower operating cost? Note: this is the cost of customer waiting in the system.

Operation Management, Management Studies

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