Determine the optimum production rate


Jobs arrive at a machine shop according to a Poisson distribution at the rate of R jobs per week. An automatic machine represents the bottleneck in the shop. It is estimated that a unit increase in the production rate of the machine will cost C1 per week.Delayed jobs normally results in lost business , which estimated to be C2 per job per week. Determine the optimum production rate?

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Basic Statistics: Determine the optimum production rate
Reference No:- TGS0113103

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