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 areoccupied, a ship has to wait for one to be available. The harbour company makes a profit of $250from a ship that is not waited. For each day in the queue, ships pay $25 less. The management ofthe harbour considers two options to improve the system: Option I: A new landing place could bebuilt for $10,000. Option II: Existing landing places could be improved to serve 4.9 ships per day for$15,000a. 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?

A) Calculate the average queue length for the current system

Answered: In a harbour, there are 2 landing…

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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