The purpose of this assignment is to apply a waiting line model to a business service...

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The purpose of this assignment is to apply a waiting line modelto a business service operation in order to recommend the mostefficient use of time and resources. (This assignment has beenadapted from Case Problem 2 in Chapter 15 of the textbook.) Use theinformation in the scenario provided to prepare a managerial reportfor Office Equipment, Inc. (OEI). Scenario Office Equipment, Inc.(OEI) leases automatic mailing machines to business customers inFort Wayne, Indiana. The company built its success on a reputationof providing timely maintenance and repair service. Each OEIservice contract states that a service technician will arrive at acustomer’s business site within an average of 3 hours from the timethat the customer notifies OEI of an equipment problem. Currently,OEI has 10 customers with service contracts. One service technicianis responsible for handling all service calls. A statisticalanalysis of historical service records indicates that a customerrequests a service call at an average rate of one call per 50 hoursof operation. If the service technician is available when acustomer calls for service, it takes the technician an average of 1hour of travel time to reach the customer’s office and an averageof 1.5 hours to complete the repair service. However, if theservice technician is busy with another customer when a newcustomer calls for service, the technician completes the currentservice call and any other waiting service calls before respondingto the new service call. In such cases, after the technician isfree from all existing service commitments, the technician takes anaverage of 1 hour of travel time to reach the new customer’s officeand an average of 1.5 hours to complete the repair service. Thecost of the service technician is $80 per hour. The downtime cost(wait time and service time) for customers is $100 per hour. OEI isplanning to expand its business. Within 1 year, OEI projects thatit will have 20 customers, and within 2 years, OEI projects that itwill have 30 customers. Although OEI is satisfied that one servicetechnician can handle the 10 existing customers, management isconcerned about the ability of one technician to meet the average3-hour service call guarantee when the OEI customer base expands.In a recent planning meeting, the marketing manager made a proposalto add a second service technician when OEI reaches 20 customersand to add a third service technician when OEI reaches 30customers. Before making a final decision, management would like ananalysis of OEI service capabilities. OEI is particularlyinterested in meeting the average 3-hour waiting time guarantee atthe lowest possible total cost. Managerial Report Develop amanagerial report (1,000-1,250 words) summarizing your analysis ofthe OEI service capabilities. Make recommendations regarding thenumber of technicians to be used when OEI reaches 20 and then 30customers, and justify your response. Include a discussion of thefollowing issues in your report: 4. OEI is satisfied that oneservice technician can handle the 10 existing customers. Use awaiting line model to determine the following information: (a)probability that no customers are in the system, (b) average numberof customers in the waiting line, (c) average number of customersin the system, (d) average time a customer waits until the servicetechnician arrives, (e) average time a customer waits until themachine is back in operation, (f) probability that a customer willhave to wait more than one hour for the service technician toarrive, and (g) the total cost per hour for the service operation.I need help with this part, please show all your work.

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