A casino employs a technician to repair slot machines that b…
A casino employs a technician to repair slot machines that break down at an average of 6 machines per day (Poisson in nature). The casino operates 2000 slot machines on the casino floor. The technician can service an average of 9 machines per day, with a repair time distribution that approximates an exponential distribution. The technician’s cost is approximately $150 per day, while the cost associated with lost productivity from each machine breakdown is estimated at $120 per machine per day (or any fraction thereof). If the casino hired a second technician at the same cost as the first what would be the cost savings (i.e. the change in the sum of lost productivity cost plus service cost)?