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During the campus Spring Fling, the bumper car amusement attraction has a problem of cars becoming disabled and in need of repair. Repair personnel can be hired at the rate of $20 per hour, but they only work as one team. Thus, if one person is hired, he or she works alone; two or three people work together on the same repair.
One repairer can fix cars in an average time of 28 minutes. Two repairers take 21 minutes, and three take 15 minutes. While these cars are down, lost income is $40 per hour. Cars tend to break down at the rate of two per hour.
How many repairers should be hired?
Why do you think many firms are experiencing an increase in their levels of outsourcing?
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