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As mentioned, the cooperative uses the storage bin heavily only 2 weeks per year. Farmers estimate that ut unloading costs by 50% next year. It will cost $9,000 to do so during the off-season. he one year net cost/benefit to enlarge the storage area = $ (round your response to the nearest whole

As mentioned, the cooperative uses the storage bin heavily only 2 weeks per year. Farmers estimate that ut unloading costs by 50% next year. It will cost $9,000 to do so during the off-season. he one year net cost/benefit to enlarge the storage area = $ (round your response to the nearest whole

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Please answer part f for me.

The wheat harvesting season in the American Midwest is short, and farmers deliver their truckloads of wheat to a giant central storage bin within a 2-week span. Because of this, wheat-filled trucks waiting to unload and return to the fields have been known to back up for a block at the receiving bin. The central bin is owned cooperatively, and it is to every farmer’s benefit to make the unloading/storage process as efficient as possible. The cost of grain deterioration caused by unloading delays and the cost of truck rental and idle driver time are significant concerns to the cooperative members. Although farmers have difficulty quantifying crop damage, it is easy to assign a waiting and unloading cost for truck and driver of $17 per hour. During the 2-week harvest season, the storage bin is open and operated 16 hours per day, 7 days per week, and can unload 36 trucks per hour according to a negative exponential distribution. Full trucks arrive all day long (during the hours the bin is open) at a rate of about 31 per hour, following a Poisson pattern. To help the cooperative get a handle on the problem of lost time while trucks are waiting in line or unloading at the bin, find the following: a) The average number of trucks in the unloading system = 6.20 trucks (round your response to two decimal places). b) The average time per truck in the system = 12 minutes (round your response to the nearest whole number). c) The utilization rate for the bin area = 0.861 (round your response to three decimal places). d) The probability that there are more than three trucks in the system = 0.550 (round your response to three decimal places). e) The total daily cost to the farmers of having their trucks tied up in the unloading process = $1,686 per day (round your response to the nearest whole number). f) As mentioned, the cooperative uses the storage bin heavily only 2 weeks per year. Farmers estimate that enlarging the bin would cut unloading costs by 50% next year. It will cost $9,000 to do so during the off-season. The one year net cost/benefit to enlarge the storage area = $______ (round your response to the nearest whole number).
Transcribed Image Text:The wheat harvesting season in the American Midwest is short, and farmers deliver their truckloads of wheat to a giant central storage bin within a 2-week span. Because of this, wheat-filled trucks waiting to unload and return to the fields have been known to back up for a block at the receiving bin. The central bin is owned cooperatively, and it is to every farmer’s benefit to make the unloading/storage process as efficient as possible. The cost of grain deterioration caused by unloading delays and the cost of truck rental and idle driver time are significant concerns to the cooperative members. Although farmers have difficulty quantifying crop damage, it is easy to assign a waiting and unloading cost for truck and driver of $17 per hour. During the 2-week harvest season, the storage bin is open and operated 16 hours per day, 7 days per week, and can unload 36 trucks per hour according to a negative exponential distribution. Full trucks arrive all day long (during the hours the bin is open) at a rate of about 31 per hour, following a Poisson pattern. To help the cooperative get a handle on the problem of lost time while trucks are waiting in line or unloading at the bin, find the following: a) The average number of trucks in the unloading system = 6.20 trucks (round your response to two decimal places). b) The average time per truck in the system = 12 minutes (round your response to the nearest whole number). c) The utilization rate for the bin area = 0.861 (round your response to three decimal places). d) The probability that there are more than three trucks in the system = 0.550 (round your response to three decimal places). e) The total daily cost to the farmers of having their trucks tied up in the unloading process = $1,686 per day (round your response to the nearest whole number). f) As mentioned, the cooperative uses the storage bin heavily only 2 weeks per year. Farmers estimate that enlarging the bin would cut unloading costs by 50% next year. It will cost $9,000 to do so during the off-season. The one year net cost/benefit to enlarge the storage area = $______ (round your response to the nearest whole number).
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