Kolkmeyer Manufacturing Company is considering adding twomachines to its manufacturing operation. This addition will bringthe number of machines to ten. The president of Kolkmeyer asked fora study of the need to add a second employee to the repairoperation. The arrival rate is 0.05 machines per hour for eachmachine, and the service rate for each individual assigned to therepair operation is 0.4 machines per hour.
- Compute the operating characteristics if the company retainsthe single-employee repair operation. If required, round youranswers to four decimal places.
| P0 | = |
| Lq | = |
| L | = |
| Wq | = hours |
| W | = hours |
- Compute the operating characteristics if a second employee isadded to the machine repair operation. If required, round youranswers to four decimal places.
| P0 | = |
| Lq | = |
| L | = |
| Wq | = hours |
| W | = hours |
- Each employee is paid $25 per hour. Machine downtime is valuedat $75 per hour. From an economic point of view, should one or twoemployees handle the machine repair operation? Explain. Ifrequired, round your answers to two decimal places.
Cost of one employee system: $
Cost of two employees system: $
From an economic point of view, two employees shouldhandle the machine repair operation.
