The Decision Sciences Department is trying to determine whether to rent a slow or fast copier. The department believes that an employee's time is worth $15 an 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 6 minutes to complete copying. On average, 4 employees per hour need to use the copying machine. (Assume the copying times and inter-arrival times to the copying machine are exponentially distributed.) Which machine should the department rent to minimize expected total cost per hour?
This posting contains solution to following problem on Queuing models :minimize expected total cost per hour