A Company Has Tool Cribs Where Workmen Draw Parts

question 1

Essay

A company has tool cribs where workmen draw parts. Two men have applied for the position of distributing parts to the workmen. George Fuller is fresh out of trade school and expects a $6 per hour salary. His average service time is 4 minutes. John Cox is a veteran who expects $12 per hour. His average service time is 2 minutes. A workman's time is figured at $10 per hour. Workmen arrive to draw parts at an average rate of 12 per hour.
a.What is the average waiting time a workman would spend in the system under each applicant?
b.Which applicant should be hired?

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Definitions:

Machine-Hours

A measure of production volume expressed in the total number of hours that machines are operated.

Departmental Predetermined Overhead Rates

Rates used to allocate overhead costs to products, calculated in advance for each department based on estimated overheads and activity levels.

Machine-Hours

An index of manufacturing productivity determined by the total hours of machine operation.

Machine-Hours

A measure of production time, indicating how many hours machines are used in the manufacturing process.