A Crew of Mechanics at the Highway Department Garage Repair

question 53

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). Which is cheaper, the existing system with one service crew, or a revised system with two service crews?