Introduction to Management Science 12th Edition by Bernard Taylor

Exercise 28

The associate dean of the college of business at Tech is determining which of two copiers he should lease for the college's administrative suite. A regular copier leases for $8 per hour, and it takes an employee an average of 6 minutes (exponentially distributed) to complete a copying job. A deluxe, high-speed copier leases for $16 per hour, and it requires an average of 3 minutes to complete a copying job. Employees arrive at the copying machine at a rate of 7 per hour (Poisson distributed), and an employee's time is valued at $10 per hour. Determine which copier the college should lease.