Department rent to minimize expected total cost per hour


Discuss the below:

The Decision Sciences Department is trying to determine whether to rent a slow or fast copier. The department believes that an employee's time is worth $15 an hour. The slow copier rents for $4 per hour, and it takes an employee an average of 10 minutes to complete copying. The fast copier rents for $15 per hour, and it takes an employee an average of 6 minutes to complete copying. On average, 4 employees per hour need to use the copying machine. (Assume the copying times and inter-arrival times to the copying machine are exponentially distributed.) Which machine should the department rent to minimize expected total cost per hour?

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