Homework Help is Here – Start Your Trial Now!
Business
Operations Management
In a harbour, there are 2 landing places. Ships arrive at a rate of 8 per day (exponentially distributed). Cranes at a landing places, load or unload the ships with the rate of 4.2 per day. If all places are occupied, a ship has to wait for one to be available. The harbour company makes a profit of $250 from a ship that is not waited. For each day in the queue, ships pay $25 less. The management of the harbour considers two options to improve the system: Option I: A new landing place could be built for $10,000. Option II: Existing landing places could be improved to serve 4.9 ships per day for $15,000 a. Calculate the average queue length for the current system. b. Which option should be picked to improve the profit per year? c. If the improvement options could be implemented together, would you recommend it? Why?

In a harbour, there are 2 landing places. Ships arrive at a rate of 8 per day (exponentially distributed). Cranes at a landing places, load or unload the ships with the rate of 4.2 per day. If all places are occupied, a ship has to wait for one to be available. The harbour company makes a profit of $250 from a ship that is not waited. For each day in the queue, ships pay $25 less. The management of the harbour considers two options to improve the system: Option I: A new landing place could be built for $10,000. Option II: Existing landing places could be improved to serve 4.9 ships per day for $15,000 a. Calculate the average queue length for the current system. b. Which option should be picked to improve the profit per year? c. If the improvement options could be implemented together, would you recommend it? Why?

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...
See similar textbooks
icon
Related questions
Question
In a harbour, there are 2 landing places. Ships arrive at a rate of 8 per day (exponentially distributed). Cranes at a landing places, load or unload the ships with the rate of 4.2 per day. If all places are occupied, a ship has to wait for one to be available. The harbour company makes a profit of $250 from a ship that is not waited. For each day in the queue, ships pay $25 less. The management of the harbour considers two options to improve the system: Option I: A new landing place could be built for $10,000. Option II: Existing landing places could be improved to serve 4.9 ships per day for $15,000 a. Calculate the average queue length for the current system. b. Which option should be picked to improve the profit per year? c. If the improvement options could be implemented together, would you recommend it? Why?
Transcribed Image Text:In a harbour, there are 2 landing places. Ships arrive at a rate of 8 per day (exponentially distributed). Cranes at a landing places, load or unload the ships with the rate of 4.2 per day. If all places are occupied, a ship has to wait for one to be available. The harbour company makes a profit of $250 from a ship that is not waited. For each day in the queue, ships pay $25 less. The management of the harbour considers two options to improve the system: Option I: A new landing place could be built for $10,000. Option II: Existing landing places could be improved to serve 4.9 ships per day for $15,000 a. Calculate the average queue length for the current system. b. Which option should be picked to improve the profit per year? c. If the improvement options could be implemented together, would you recommend it? Why?
Expert Solution
steps

Step by step

Solved in 4 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS