Two Troubleshooters Handle Service Calls for 10 Machines

question 21

Essay

Two troubleshooters handle service calls for 10 machines.The average time between service requirements is 18 days, and service time averages 2 days.Assume exponential distributions.While running, each machine can produce 1,500 pieces per day.Determine:
(A) the percentage of time troubleshooters are idle
(B) each machine's net productivity
(C) If troubleshooters represent a cost of $150 per day, and machine downtime cost is $600 per day, would another troubleshooter be justified? Explain.

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Definitions:

Asset Efficiency

A measure of how effectively a company utilizes its assets to generate revenue.

Percentage of Sales Approach

A financial planning method that uses a specified percentage of sales or revenues to forecast future financial needs or growth requirements.

Variable Expenses

Costs that change in proportion to the activity or business volume.

Fixed Expenses

Costs that do not change in total despite fluctuations in business activity levels or volume, such as rent or salaries.