OPERATIONS MANAGEMENT (LL)-W/ACCESS
17th Edition
ISBN: 9781260037821
Author: CACHON
Publisher: MCG
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Chapter 16, Problem 3PA
Summary Introduction
To determine: How long the client should wait to receive the product.
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[Queuing Theory - Operation Research]
RBMC Industry manufactures a special printing according to customer specifications with respect to the number of sheets the machine can produce per hour. With this, there is a $50 increase in the production rate x. A shop owner is considering buying one of these machines. From his past experiences, the owner estimates that the arrival rate is three per hour and each order averages 500 sheets. Contracts signed by the owner, and the customer says that there will be a penalty of 10$ per late order per hour. It is assumed that the actual production time is exponential.
(a) Formulate the cost model as a function of the production rate x.
(b) Determine the optimal production rate the owner should specify in his purchase of the machine from RBMC. Hint: Get the derivative of the cost function.
The Shady Farm Milk Company can process milk at a fixed rate of 6,200 gallons/hour. The company’s clients request 104,000 gallons of milk over the course of one day. This demand is spread out uniformly from 8 a.m. to 6 p.m. The company starts producing at 8 a.m. and continues to work until all of the demand has been satisfied.
How long does an average unit milk have to wait between its arrival at the dairy until it is processed?
The mode is used infrequently in business applications because?
Chapter 16 Solutions
OPERATIONS MANAGEMENT (LL)-W/ACCESS
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