A manufacturing company operates an equipment repair business where emergency jobs arrive randomly at the rate of two jobs per 8-hour day. The company’s repair facility is a single-server system operated by a repair technician. The service time varies, with a mean repair time of 1.6 hours and a standard deviation of 1.25 hours. The company’s cost of the repair operation is $32 per hour. In the economic analysis of the waiting line system, the company uses $45 per hour cost for customers waiting during the repair process.
Arrival Rate
Service Rate
Lq (Avg. # of orders waiting)
L (Avg. # of units in the system)
Total Cost (Economic Analysis)
Calculate all 5 items above manually using formulas and showing your calculation work each step.