Due to a recent increase in business, a law firm secretary must now word-process an average of 20 letters a day (assume a Poisson distribution). It takes him approximately 20 minutes to type each letter (assume an exponential distribution). Assuming the secretary works 8 hours a day:
Assume a second secretary is hired that type at the same rate as the first one.
What is the probability that there are no letters to be typed?
What is the utilization rate for each category?
Assume the secretary’s salary is $20 per hour, and cost of having letters on the secretary’s desk (waiting to be typed) is $15 per hour. Recommend a course of action to the manager of this law firm