Question

A company is considering two alternatives for outsourcing its computer repair services. One service has 4 technicians who repair computers at a rate of one every two hours (each); this service costs $400 per day. The other service has 8 technicians who repair computers at a rate of one every two hours (each) and costs $800 per day. The cost of downtime per customer is $10/h. Assume the service process can be modeled as an M/M/c queue. The failure rate of computers is 36 per day. Assume continual operations for 24 hours per day. Which service alternative yields the minimum hourly cost for repairs? (Hint: Find the hourly overall cost for each alternative).

          A company is considering two alternatives for outsourcing its computer repair services. One service has 4 technicians who repair computers at a rate of one every two hours (each); this service costs $400 per day. The other service has 8 technicians who repair computers at a rate of one every two hours (each) and costs $800 per day. The cost of downtime per customer is $10/h. Assume the service process can be modeled as an M/M/c queue. The failure rate of computers is 36 per day. Assume continual operations for 24 hours per day. Which service alternative yields the minimum hourly cost for repairs? (Hint: Find the hourly overall cost for each alternative).

A company is considering two alternatives for outsourcing its computer repair services. One service has 4 technicians who repair computers at a rate of one every two hours (each); this service costs 400 per day. The other service has 8 technicians who repair computers at a rate of one every two hours (each) and costs800 per day. The cost of downtime per customer is 10/h. Assume the service process can be modeled as an M/M/c queue. The failure rate of computers is 36 per day. Assume continual operations for 24 hours per day. Which service alternative yields the minimum hourly cost for repairs? (Hint: Find the hourly overall cost for each alternative).

Added by William H.

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