This paper considers a problem in which an organisation is currently leasing a machine that is yielding unacceptable waiting times for those queuing to use it. There are three available options that are being considered by management where the criterion is to minimise the total cost of the system. The first is to stay with the status quo, the second is to lease a faster machine and the third is to lease multiple machines. Two types of scenarios are discussed; one in which the waiting time in the queue is taken into account while the other includes the time spent at the machine itself. An appropriate formula is derived for each situation.
|Number of pages||6|
|Journal||Review of business research|
|Publication status||Published - 2005|