Q.2) Partially completed products arrive at a workstation in a manufacturing operation at a meanrate of 40 per hour (Poisson distributed). The processing time at the workstation averages 1.2minutes per unit (exponentially distributed). The manufacturing company estimates that eachunit of in process inventory at the workstation costs $31 per day (on the average). However, thecompany can add extra employees and reduce the processing time to 0.90 minute per unit at acost of $52 per day. Determine whether the company should continue the present operation oradd extra employees.

Average cost is the per unit cost of production which is calculated by dividing the total cost of…

Answered: Q.2) Partially completed products…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter5: Network Models

Section: Chapter Questions

Problem 1C

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Question The new accounts loan officer of the Millennium Commercial Bank interviews all customers for new accounts. The customers desiring to open new accounts arrive at the rate of 4 per hour, according to a Poisson distribution, and the accounts officer spends an average of 12 minutes with each customer, setting up a new account. Required 1. Determine the operating characteristics (P0, L, Lq, W, Wq and Pw) for this system. 2. Add an additional accounts officer to the system described in this problem so that it is now a multiple-server queuing system with two channels and determine the operating characteristics required in part A.
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