In the production shop of a company, the breakdown of the machines is found to be  Poisson distributed with an average rate of 3 machines per hour. Breakdown time at one  machine cost 400 birr per hour to the company. There are two choices before the  company for hiring the repairmen. One of the repairmen is slow but cheap, the other is  fast but expensive. The slow cheap repairman demands 200 birr per hour and will repair  the broken down machines exponentially at the rate of 5 per hour. The fast expensive  man demands 300 birr per hour and will repair machines exponentially at an average rate  of 6 per hour. Which repairman should be hired?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter12: Queueing Models
Section12.5: Analytic Steady-state Queueing Models
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In the production shop of a company, the breakdown of the machines is found to be 
Poisson distributed with an average rate of 3 machines per hour. Breakdown time at one 
machine cost 400 birr per hour to the company. There are two choices before the 
company for hiring the repairmen. One of the repairmen is slow but cheap, the other is 
fast but expensive. The slow cheap repairman demands 200 birr per hour and will repair 
the broken down machines exponentially at the rate of 5 per hour. The fast expensive 
man demands 300 birr per hour and will repair machines exponentially at an average rate 
of 6 per hour. Which repairman should be hired?

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