A crew of mechanics at the Highway Department Garage repair vehicles that break down at an average of ? = 8 vehicles per day (approximately Poisson in nature)
The mechanic crew can service an average of ? = 11 vehicles per day with a repair time distribution that approximates an exponential distribution. The crew cost is approximately $300 per day. The cost associated with lost productivity from the breakdown is estimated at $150 per vehicle per day (or any fraction thereof). What is the expected cost of this system?
The number of vehicles out of service is Ls = 8 / (11 - 8 ) = 8/3 = 2.667. The cost of waiting is
$150 × Ls = $150 × 2.667 = $400. Server cost is $300 per day for a total of $700.
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