You have been asked to analyze the queue for registrations for a popular msom seminar at a major national conference. conference attendees arrive to register at the rate of 5 people every 15 minutes (poisson distributed). it takes each host, any number of which can be hired directly through the conference at the cost of $17 per hour, 7 minutes to register a guest, following a negative exponential distribution. the conference recognizes a waiting cost of $40 per hour per guest in line. a single waiting line is set up, but can accommodate multiple servers.

what is the minimum number of hosts that could be hired for this system?
what is the optimal number of servers needed to minimize total costs?
rounded to the nearest dollar, what is total cost for the system (including waiting and service costs) at the optimal number of servers if the registration desk is open for an 8 hour day?
at the optimal number of servers, what is the average time a guest would spend waiting to register?

Make or buy eastside company incurs a total cost of $120,000 in producing 10,000 units of a component needed in the assembly of its major product. the component can be purchased from an outside supplier for $11 per unit. a related cost study indicates that the total cost of the component includes fixed costs equal to 50% of the variable costs involved. a. should eastside buy the component if it cannot otherwise use the released capacity? present your answer in the form of differential analysis. use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers. cost from outside supplier $answer variable costs avoided by purchasing answer net advantage (disadvantage) to purchase alternative $answer b. what would be your answer to requirement (a) if the released capacity could be used in a project that would generate $50,000 of contribution margin? use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers.