A Crew of Mechanics at the Highway Department Garage Repair

question 24

Essay

A crew of mechanics at the Highway Department garage repair vehicles that break down at an average of λ = 8 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. 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?

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Definitions:

Unimodal

Describes a distribution that has a single peak.

Sample Median

The middle value of a sample data set when it is arranged in ascending order, used as a measure of central tendency.

Monthly Rent

The amount a tenant pays to a landlord for the use of property or space on a monthly basis.

Mode

The value that appears most frequently in a data set.