The Decision Sciences Department is trying to determine whether to rent a slow or a fast copier. The department believes that an employee's time is worth $15 per hour. The slow copier rents for $4 per hour, and it takes an employee an average of 10 minutes to complete copying. The fast copier rents for $15 per hour, and it takes an employee an average of six minutes to complete copying. On average, four employees per hour need to use the copying machine. (Assume the copying times and interarrival times to the copying machine are exponentially distributed.) Which machine should the department rent to minimize expected total cost per hour? A) B) C) D) Worst to sloW copier. Better to slowW copier. Worst to fast copier. Better to slow copier. Answer

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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You are attempling question 7 out of 12
The Decision Sciences Department is trying to determine whether to rent a slow or a fast
copier. The department believes that an employee's time is worth $15 per hour. The slow
copier rents for $4 per hour, and it takes an employee an average of 10 minutes to
complete copying. The fast copier rents for $15 per hour, and it takes an employee an
average of six minutes to complete copying. On average, fouremployees per hour need to
use the copying machine. (Assumne the copying times and interarrival times to the
copying machine are exponentially distributed.) Which mạchine should the department
rent to minimize expected total cost per hour?
A)
B)
C)
D)
Worst to slow copier.
Better to sloW copier.
Worst to fäst copier.
Better to slowW copier.
Answer
Transcribed Image Text:Note: - You are attempling question 7 out of 12 The Decision Sciences Department is trying to determine whether to rent a slow or a fast copier. The department believes that an employee's time is worth $15 per hour. The slow copier rents for $4 per hour, and it takes an employee an average of 10 minutes to complete copying. The fast copier rents for $15 per hour, and it takes an employee an average of six minutes to complete copying. On average, fouremployees per hour need to use the copying machine. (Assumne the copying times and interarrival times to the copying machine are exponentially distributed.) Which mạchine should the department rent to minimize expected total cost per hour? A) B) C) D) Worst to slow copier. Better to sloW copier. Worst to fäst copier. Better to slowW copier. Answer
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