Auto Shoppe is considering the purchase of a new engine computer code reader for $30,000. Auto Shoppe can charge $50 for the service of reading the codes from a single car engine, while the actual cost of the reading would only be $10 per car engine. How many cars would need their engine computer codes read by Auto Shoppe for it to break-even on this purchase? a. 1000 cars O b. 210 cars Oc. 160 cars d. 750 cars Oe. 1210 cars

Auto Shoppe is considering the purchase of a new engine computer code reader for $30,000. Auto Shoppe can charge $50 for the service of reading the codes from a single car engine, while the actual cost of the reading would only be $10 per car engine. How many cars would need their engine computer codes read by Auto Shoppe for it to break-even on this purchase? a. 1000 cars O b. 210 cars Oc. 160 cars d. 750 cars Oe. 1210 cars

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter12: Queueing Models

Section12.5: Analytic Steady-state Queueing Models

Problem 26P

See similar textbooks

Similar questions

This problem illustrates balking. The Oryo Cookie IceCream Shop in Dunkirk Square has three competitors. Sincepeople don’t like to wait in long lines for ice cream, thearrival rate to the Oryo Cookie Ice Cream Shop depends onthe number of people in the shop. More specifically, whilej 4 customers are present in the Oryo shop, customersarrive at a rate of (20 5j) customers per hour. If more than4 people are in the Oryo shop, the arrival rate is zero. Foreach customer, revenues less raw material costs are 50¢.Each server is paid $3 per hour. A server can serve anaverage of 10 customers per hour. To maximize expectedprofits (revenues less raw material and labor costs), howmany servers should Oryo hire? Assume that interarrivaland service times are exponential.
A supermarket is trying to decide how many cashregisters to keep open. Suppose an average of 18 customersarrive each hour, and the average checkout time for acustomer is 4 minutes. Interarrival times and service timesare exponential, and the system may be modeled as anM/M/s/GD/∞/∞ queuing system. It costs $20 per hour tooperate a cash register, and a cost of 25¢ is assessed foreach minute the customer spends in the cash register area.How many registers should the store open?
Bectol, Inc. is building a dam. A total of 10 million cuft of dirt is needed to construct the dam. A bulldozer is usedto collect dirt for the dam. Then the dirt is moved via dumpersto the dam site. Only one bulldozer is available, and it rentsfor $100 per hour. Bectol can rent, at $40 per hour, as manydumpers as desired. Each dumper can hold 1,000 cu ft ofdirt. It takes an average of 12 minutes for the bulldozer toload a dumper with dirt, and each dumper an average of fiveminutes to deliver the dirt to the dam and return to the bulldozer. Making appropriate assumptions about exponen-tiality, determine how Bectol can minimize the total expected cost of moving the dirt needed to build the dam.
Cakes baked by the Freshfood Bakery are transported fromthe ovens to be packaged by one of three wrappers. Eachwrapper can wrap an average of 120 cakes per hour (Poissondistributed). The cakes are brought to the wrappers at therate of 300 per hour (Poisson distributed). If a cake sitslonger than 5 minutes before being wrapped, it will not befresh enough to meet the bakery’s quality control standards.Does the bakery need to hire another wrapper?
The dry cleaning station has three cleaning devices, r = 3. The intensity of the flow of visitors λ = 6 (person / h). Intensity of serving visitors with one device µ = 3 (person / h). The average number of visitors leaving the queue without waiting for service, ν = 1 (person / hour). Find the absolute throughput of the dry cleaning point.
The question comes out of my "Practical Operations Management's" textbook. Tube Country rents circular rubber rafts that its customers use to float down the Ichituckni River. Tube Country owns a fleet of 200 rafts, each of which is returned on the same day it is rented, and each raft can only be rented once during a business day. Rough water along the Ichituckni River often causes rafts to become scratched and leak air, so the staff at Tube Country is constantly repairing rafts before their next rental. As a result, Tube Country estimates that 5% of its rental fleet is unavailable for rent at any given time. Tube Country rents rafts for $5 each, and incurs $1.00 in variable costs with each raft rental. Tube Country must also pay $20,000 in fixed business costs annually. What is the daily effective capacity of Tube Country’s fleet? The issue of rough water creating the need for continual repairs can best be described as what? Suppose Tube Country rents 100 rafts on a certain day.…
The question comes out of my "Practical Operations Management's" textbook. Tube Country rents circular rubber rafts that its customers use to float down the Ichituckni River. Tube Country owns a fleet of 200 rafts, each of which is returned on the same day it is rented, and each raft can only be rented once during a business day. Rough water along the Ichituckni River often causes rafts to become scratched and leak air, so the staff at Tube Country is constantly repairing rafts before their next rental. As a result, Tube Country estimates that 5% of its rental fleet is unavailable for rent at any given time. Tube Country rents rafts for $5 each, and incurs $1.00 in variable costs with each raft rental. Tube Country must also pay $20,000 in fixed business costs annually. How many rentals does Tube Country need to break even each year? How many rentals does Tube Country need to make in a year to earn $5,000 in profit? Last year, the owner of Tube Country, Mr. Robert “Bobber” Gowdy, had…
A milling department has 10 machines. Each operates an average of eight hours before requiring adjustment, which takes an average of 3.43 hours. While running, each machine can produce 50 pieces an hour. Use Table 1, Table 2 and Table 3. a. With one adjuster, what is the net average hourly output per machine? (Round your answer to 1 decimal place.) Number of Pieces ?? per machine b. If machine downtime cost is $75 per hour and adjuster cost is $31 per hour, how many adjusters would be optimal? Multiple Choice 1 2 3 4 5
Beauty Salon serves approximately 1,200 customers annually.These are the breakdown of its customers:Teens - 500 Middle Age - 450 Senior Citizen - 250All customers spend an average of Php500.00 per visit.Assuming the customers visit ABC Salon every 2 months, what is the projected annual market sizefor Beauty Salon?However, during the 3-month lockdown, salons are not allowed to operate.What is the projected loss in revenues for ABC Salon?
Robot Company franchises combination gas and car wash stations throughout the United States. Robot gives a free car wash for a gasoline fill-up or, for a wash alone, charges $0.50. Past experience shows that the number of customers that have car washes following fill-ups is about the same as for a wash alone. The average profit on a gasoline fill-up is about $0.70, and the cost of the car wash to Robot is $0.10. The robot stays open 14 hours per day. The robot has three power units and drives assemblies, and a franchisee must select the unit preferred. Unit I can wash cars at the rate of one every five minutes and is leased for $12 per day. Unit II, a larger unit, can wash cars at the rate of one every four minutes but costs $16 per day. Unit III, the largest, costs $22 per day and can wash a car in three minutes. The franchisee estimates that customers will not wait in line for more than five minutes for a car wash. A longer time will cause Robots to lose gasoline sales as well as the…
Larry Ellison starts a company that manufactures high-end custom leather bags. Hehires two employees. Each employee only begins working on a bag when a customerorder has been received and then she makes the bag from beginning to end. The average production time of a bag is 1.8 days, with a standard deviation of 2.7 days. Larryexpects to receive one customer order per day on average. The interarrival times oforders have a coefficient of variation of one. What is the expected duration, in days,between when an order is received and when production begins on the bag?
Podunk University Operations Research Departmenthas two phone lines. An average of 30 people per hour tryto call the OR Department, and the average length of aphone call is 1 minute. If a person attempts to call whenboth lines are busy, he or she hangs up and is lost to thesystem. Assume that the time between people attempting tocall and service times is exponential.a What fraction of the time will both lines be free?What fraction of the time will both lines be busy? Whatfraction of the time will exactly one line be free?b On the average, how many lines will be busy?c On the average, how many callers will hang up eachhour?