Approximately poisson in nature

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Reference no: EM131114887

A crew of mechanics at the Highway Department garage repair vehicles that break down at an average of ? =10 vehicles per hour (approximately Poisson in nature). The mechanic crew can service an average of 2 vehicles every 10 minutes with a repair time distribution that approximates an exponential distribution. The crew cost is approximately $250 per day. The cost associated with lost productivity from the breakdown is estimated at $80 per vehicle per day. Which is cheaper, the existing system with one service crew or a revised system with two service crews? Note that the average waiting time for adding the second crew is 0.02.

Reference no: EM131114887

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