TemaTire Services (TTS) decided to hire a new mechanic to handle all tire changes for customers ordering a new set of tires. Two mechanics have been shortlisted for the job. One mechanic has limited experience, can be hired for GH¢14 per hour, and can service an average of three customers per hour. The other mechanic has several years of experience, can service an average of four customers per hour, but must be paid GH¢20 per hour. Historical data shows that customers arrive at the TTS garage at the rate of twocustomers per hour. 5a)Assuming Poisson arrivals and exponential service times, compute the following for eachmechanic:(i).Average number of customers waiting(ii).Average number of customers in the system(iii).The average time spent in the queue(iv).The average time spent in the system
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
TemaTire Services (TTS) decided to hire a new mechanic to handle all tire changes for customers ordering a new set of tires. Two mechanics have been shortlisted for the job. One mechanic has limited experience, can be hired for GH¢14 per hour, and can service an average of three customers per hour. The other mechanic has several years of experience, can service an average of four customers per hour, but must be paid GH¢20 per hour. Historical data shows that customers arrive at the TTS garage at the rate of twocustomers per hour.
5a)Assuming Poisson arrivals and exponential service times, compute the following for eachmechanic:(i).Average number of customers waiting(ii).Average number of customers in the system(iii).The average time spent in the queue(iv).The average time spent in the system(v).The probability that no queues would build up(vi).The probability that exactly two customers are waiting at any given time.(vii).The probability that up to two customers are waiting at any given time.b)If the company assigns a customer waiting cost of GH¢30 per hour, which mechanic provides the lower operating total cost (TC)?c)With the aid of a sketch, show the economic relationship between service cost and waiting costs, and justify whether or not it is necessary for TTSto keep investing in better and/or additional mechanics until waiting time reduces to zero
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