WINTA GARMENT COMPANY The garment industry is an excellent example of off-shoring and out-sourcing. However, that does not imply that these companies...

calculations for the inputs used. Include a copy (page 1 only!) of the Queue model output for the Base Case. Assume a poisson Arrival Rate for the shirts at the Packager at an average based on steady-state (i.e. level inflow) over the available hours per day of the Packaging operation.

b. Management receives a major and continuing order for a new customer. The ONLY way that Winta can accept this business is to reduce the current (or Base Case) Utilization of the Cutter operation to 50% or less. (Hint: This tells you that your answer in A should have a U > 50%.) There are two ways to accomplish this: lease one or more Packager machines at $2800 total cost each per week OR reduce the Service Rate to achieve this target. Each one second improvement in the Mean Service Time of the Packaging operation is estimated to cost $1000 per week. Which option is most economical and how much is saved per week? Include the Queue file output for BOTH options and a summary page of your decision.