Assignment:
A process manager is considering automating a bottleneck operation. The operation receives between three and nine jobs per hour in a random fashion. The cost of waiting associated with the jobs is estimated at $2.20 per hour. The team’s equipment choices are specified in Table below. Develop a spreadsheet simulation to compare the estimated hourly cost of the three alternatives. Hint: Uniform random numbers between a and b can be generated in Excel with the formula = RAND()*(b − a) + a. Random numbers from a normal distribution with a mean m and standard deviations can be generated in Excel with the formula = NORM.INV (RAND(), m, s). (Simulate 500 jobs in each case.)
Machine : A Service Time: Uniform between 4 and 12 min Hourly Cost: $12
Machine : B Service Time: Exponential with an average of 8 min Hourly Cost: $8
Machine : C ServiceTime: Normal with an average of 8 min and a standard deviation of 1min Hourly Cost: $15
Provide complete and step by step solution for the question and show calculations and use formulas.