Should three hills add a second repairperson each shift

Assignment Help Finance Basics
Reference no: EM13324119

Stephanie Robbins is the Three Hills Power Company management analyst assigned to simulate maintenance costs. In Section 14.6 we describe the simulation of 15 generator breakdowns and the repair times required when one repairperson is on duty per shift. The total simulated maintenance cost of the current system is $4,320.

Robbins would now like to examine the relative cost-effectiveness of adding one more worker per shift. The new repairperson would be paid $30 per hour, the same rate as the first is paid. The cost per breakdown hour is still $75. Robbins makes one vital assumption as she begins-that repair times with two workers will be exactly one-half the times required with only one repairperson on duty per shift. Table 14.13 can then be restated as follows:

REPAIR TIME

REQUIRED (HOURS)         PROBABILITY

               0.5                           0.28

           1.0                           0.52

           1.5                           0.20

                                   1.00

(a) Simulate this proposed maintenance system change over a 15-generator breakdown period. Select the random numbers needed for time between breakdowns from the second-from-the bottom row of Table 14.4 (beginning with the digits 69). Select random numbers for generator repair times from the last row of the table (beginning with 37).

(b) Should Three Hills add a second repairperson each shift?

Reference no: EM13324119

Obtain cash flow statements of wal-mart

Obtain cash flow statements of Wal-Mart for the last two years for the publicly traded company and select two performance ratios and two coverage ratios for cash flow analysis

What key factors of a business situation

Describe the key differences between simulation models and the models covered in previous modules, not only from the perspective of their applications, but also from the per

Identify good investment opportunities for the firm

Can you provide some examples of situations in which business ethics play a role in the financial management process - Identify three good investment opportunities for the fir

Determine significant benefit to an organization

Determine one significant benefit to an organization that decides to lease an asset that conventional lease analysis evaluation reveals has a negative Net Advantage to Leasi

Describe an annuity with an infinite life

The over-the-counter market is a network of dealers that provides for trading securities not listed on organized exchanges and What is the term used to describe an annuity wit

What he has invested in the company

An unincorporated business owned by one individual and the owner benefits from the limited liability for business which limits his losses to what he has invested in the comp

Klingons current balance sheet

Klingon's current balance sheet shows net fixed assets of $12 million, current liabilities of $860,000, and net working capital of $224,000. If all the current assets were l

Why central banks buy either their own currency

Describe when and why central banks buy either their own currency or the currency of another nation in an effort to control exchange rates and what did the central banks do

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd