Question

BRITE LITE, Inc. has production machines that break down in a Poisson pattern at the rate of three per hour during the eight hour work day. BRITE LITE is considering the repair services of I. M. Slow and I. M. Fast. Slow repairs machines with an exponential repair time distribution at an average rate of four machines per hour for a service charge of $$\$ 120$$ per eight hour day. Fast also provides exponential repair time but with an average rate of six machines per hour; Fast charges $$\$ 200$$ per eight hour day. Which person should be hired on a daily basis if the cost of an idle machine is $$\$ 50$$ per hour? By "daily basis" we mean the person chosen must be paid for an eight hour day every day, even if the person is idle some of the time.

   BRITE LITE, Inc. has production machines that break down in a Poisson pattern at the rate of three per hour during the eight hour work day. BRITE LITE is considering the repair services of I. M. Slow and I. M. Fast. Slow repairs machines with an exponential repair time distribution at an average rate of four machines per hour for a service charge of $$\$ 120$$ per eight hour day. Fast also provides exponential repair time but with an average rate of six machines per hour; Fast charges $$\$ 200$$ per eight hour day. Which person should be hired on a daily basis if the cost of an idle machine is $$\$ 50$$ per hour? By "daily basis" we mean the person chosen must be paid for an eight hour day every day, even if the person is idle some of the time.
 
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Probability, Statistics, and Queuing Theory with Computer Science Applications, Second Edition (Computer Science and Scientific Computing)
Probability, Statistics, and Queuing Theory with Computer Science Applications, Second Edition (Computer Science and Scientific Computing)
Arnold O. Allen 2nd Edition
Chapter 5, Problem 5 ↓

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Since the machines break down in a Poisson pattern at the rate of three per hour and there are eight hours in a workday, the average number of breakdowns per day is: \[ 3 \text{ breakdowns/hour} \times 8 \text{ hours/day} = 24 \text{ breakdowns/day} \]  Show more…

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BRITE LITE, Inc. has production machines that break down in a Poisson pattern at the rate of three per hour during the eight hour work day. BRITE LITE is considering the repair services of I. M. Slow and I. M. Fast. Slow repairs machines with an exponential repair time distribution at an average rate of four machines per hour for a service charge of $$\$ 120$$ per eight hour day. Fast also provides exponential repair time but with an average rate of six machines per hour; Fast charges $$\$ 200$$ per eight hour day. Which person should be hired on a daily basis if the cost of an idle machine is $$\$ 50$$ per hour? By "daily basis" we mean the person chosen must be paid for an eight hour day every day, even if the person is idle some of the time.
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