A Crew of Mechanics at the Highway Department Garage Repair

question 19

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:

Five-Step Model

A framework used in accounting to recognize revenue, involving identifying the contract, the performance obligations, the transaction price, allocation of price, and revenue recognition as performance obligations are satisfied.

Refund Liability

An obligation of the seller to return the funds to a buyer due to returns, cancellations, or dissatisfaction with goods or services sold.

Return Of Goods

The process by which customers return purchased goods to the seller due to defects, dissatisfaction, or other reasons, affecting inventory and sales revenue.

Inventory

The complete quantity of products and materials in a company's possession intended for future sale or manufacturing.