A Crew of Mechanics at the Highway Department Garage Repair

question 4

Essay

A crew of mechanics at the Highway Department Garage repair vehicles that break down at an average of λ = 7 vehicles per day (approximately Poisson in nature). The mechanic crew can service an average of μ = 11 vehicles per day with a repair time distribution that approximates an exponential distribution.
(a) What is the utilization rate for this service system?
(b) What is the average time before the facility can return a breakdown to service?
(c) How much of that time is spent waiting for service?
(d) How many vehicles are likely to be waiting for service at any one time?

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Definitions:

Actual Price

The genuine cost at which a transaction has occurred or will occur, without any adjustments or discounts.

Overhead Variance

The difference between the actual overhead incurred and the overhead allocated to production during a given period.

Flexible Budget

A projection of budget data for various levels of activity.

Overhead Applied

The portion of overhead costs allocated to individual products or job orders based on a predetermined rate.