The Corner Cleaners 24-hour laundromat has 16 washing machines. A machine breaks down every 20 days(exponentially distributed). The repair service the laundromat contracts takes an average of one day to repair amachine (exponentially distributed). A washing machineaverages $5 per hour in revenue. The laundromat is considering a new repair service that guarantees repairs in0.50 day, but they charge $10 more per hour than thecurrent repair service. Should the laundromat switch tothe new repair service?
The Corner Cleaners 24-hour laundromat has 16 washing machines. A machine breaks down every 20 days(exponentially distributed). The repair service the laundromat contracts takes an average of one day to repair amachine (exponentially distributed). A washing machineaverages $5 per hour in revenue. The laundromat is considering a new repair service that guarantees repairs in0.50 day, but they charge $10 more per hour than thecurrent repair service. Should the laundromat switch tothe new repair service?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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The Corner Cleaners 24-hour laundromat has 16 washing machines. A machine breaks down every 20 days
(exponentially distributed). The repair service the laundromat contracts takes an average of one day to repair a
machine (exponentially distributed). A washing machine
averages $5 per hour in revenue. The laundromat is considering a new repair service that guarantees repairs in
0.50 day, but they charge $10 more per hour than the
current repair service. Should the laundromat switch to
the new repair service?
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