Introduction to Management Science 12th Edition by Bernard Taylor

Exercise 20

In Problem, the Dynaco Company has found that if more than three units (average) are waiting to be processed at any one workstation, then too much money is being tied up in work-inprocess inventory (i.e., units waiting to be processed). The company estimates that (on average) each unit waiting to be processed costs $50 per day. Alternatively, operating a third press would cost $150 per day. Should the company operate a third press at this workstation
Problem
The Dynaco Manufacturing Company has an assembly line that feeds two drill presses. As partially completed products come off the line, they are lined up to be worked on as drill presses become available. The units arrive at the workstation (containing both presses) at the rate of 100 per hour. Each press operator can process an average of 60 units per hour. Compute L , L q , W , and W q.