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?

---

Definitions:

Concept Testing

The process of evaluating consumer response to an idea before introducing a product or service to the market.

R&D Consortia

Collaborative groups formed by companies, universities, or governments to undertake research and development in specific areas.

Rare Diseases

Disorders or conditions that affect a small percentage of the population, often lacking sufficient market-driven pharmaceutical research.

Medical Foundations

Organizations that support healthcare through funding medical research, hospital development, or patient care programs.