TYU company operates an equipment repair business where emergency jobs arrive ra
ID: 408083 • Letter: T
Question
TYU company operates an equipment repair business where emergency jobs arrive randomly at the rate of three jobs per 8-hour day. The company’s repair facility is a single-channel system operated by a repair technician. The service time varies, with a mean repair time of 2 hours and a standard deviation of 1.5 hours. The company’s cost of the repair operation is $28 per hour. In the economic analysis of the waiting line system, Robotics uses $35 per hour cost for customers waiting during the repair process.
a) The company is considering purchasing a computer-based equipment repair system that would enable a constant repair time of 2 hours. For practical purposes, the standard deviation is 0. Because of the computer-based system, the company’s cost of the new operation would be $32 per hour. The firm’s director of operations said no to the request for the new system because the hourly cost is $4 higher and the mean repair time is the same. Do you agree? What effect will the new system have on the waiting line characteristics of the repair service?
b) Does paying for the computer-based system to reduce the variation in service time make economic sense? How much will the new system save the company during a 40-hour work week?
Explanation / Answer
Ans: The TYU company operates an equipment repair business
jobs arrive randomly =8 hours a day
mean repair = 2 hours
standard deviation = 1.5 hours
cost of the repair operation is = $28 /hour
cost of the repair operation by robotic uses = $35 / hour
(a)Ans: if company considering to purchase a computer-based equipment repair system that would enable a constant repair time of 2 hours
cost of the repair after appling computer based equipments =$32
In my opinion there is no need for the new system because the hourly cost is $4 higher and the mean repair time is the same. I m agree with the decision of Direstor.
(b) for paying extra on computer based system not reducing the variation in servie time . beacuse the averege time consumes in repir is same as both systems triditional and computer based system . so that these is no need for extra investment in implementing computer based system for repair as per data folowing :
For triditional system
jobs arrive randomly =8 hours a day
mean repair = 2 hours
standard deviation = 1.5 hours
cost of the repair operation is = $28 /hour
For computer based system :
constant repair time of 2 hours
cost of the repair after appling computer based equipments =$32
cost of the repair operation by robotic uses = $35 / hour
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