The maintenance crew at katz electronics corporation

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The maintenance crew at Katz Electronics Corporation (KEC) can repair machines at the rate of 15 per hour (exponentially distributed). KEC has a large number of machines, and these machines break down at the rate of 10 per hour (Poisson distribution). The machine downtime cost is $100 per machine per hour. The maintenance supervisor has requested the factory manager's permission to hire two more workers for the maintenance crew. This addition will increase repair rate to 18 machines per hour. Each worker's wage, including the benefits, is estimated at $15 per hour. Should the factory manager give permission to hire the workers?

Reference no: EM13677076

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