Manufactures product in an assembly line operation

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Reference no: EM13970495

The BMore Careful manufactures a product in an assembly line operation. One of the machines on the line is a drill press that has a single assembly line feeding into it. A partially completed unit arrives at the press to be worked on every 8 minutes, on average. The machine operator can process an average of 10.5 units per hour. Assume it is a single-server waiting line model. Suppose the current operator can be replaced by a more efficient new operator, but the new operator is paid $28 per hour whereas the current operator is paid $22 per hour. The new operator can process 12.2 units per hour. If a unit’s time is considered to be worth $12 per hour, is it worth to replace the current operator with the new operator?

Reference no: EM13970495

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