Question

3. A material handler's job is to move raw materials to work stations. A manager must decide how many material handlers to hire in order to minimize the sum of employee costs and assembly line waiting costs. A study performed shows line workers waiting for material costs the company $70 per hour, material handlers earns $18 per hour and each material handler uses equipment that is estimated to cost $12 per hour. a. How many material handlers should be hired if there are approximately 6.42 requests for material per hour. material handlers can fulfil 8.57 requests per hour, and rates follow Poisson and exponential distributions respectively? M.2

Answer 1

Answort 3@ Givin information, material handlers Earns = $ 18 per hy. Estimated cost = fra perhr. calculate waiting time ? waiting time = utilization a t Where, utilization =p=.. no arrival rate, & Survice rale, u "6142 8.57 -0.7491248541. Now, substitute values in eqn . waiting time = 0.7491248541% 78.57-G.49) = 0.7491248541xBus = 0.7491248541 30.4651162291 = 0.3484 hours.

calculate cast of waiting: waiting = 0.3484 hours x 70 $24.39 ifor a handbox cost of writing = $34. 39. Now, for I additional handler additional cost hour =18 +12 =30. So, i additional handler, additional cost / hy 'is greater than the .. waiting cost. hence, i handler is optimum