Sanchez Trucking has been experiencing delays at its warehouse operations Management hired a consultant to find out why service deliveries to local businesses have taken longer than they should. The consultant narrowed down the problem to the number of work crews loading and unloading trucks. Each crew consists of 6 employees who work as a team on a variety of tasks; each employee works a full 40 hours a week. However, costs are also a concem. The consultant advised management that they could supplement work crews with short-term employees, at a higher cost, to cover unexpected needs on a weekly basis. Each work crew permanently hired by Sanchez costs $3,600 per week in wages and benefits, while a crew of short-term employees costs $5,600 per week. Complicating the decision is the fact that the weekly hourly requirements for work crews is uncertain because of the volatility in the number of deliveries to be made. Deliberating with management, the consultant arrived at the following data. O 960 1,200 1,440 Requirements (man-hours) Probability 1,680 0.2 0.1 0.5 0.2 Number of crews 4 5 6 7 If the consultant wants to offer a solution that minimizes the expected weekly costs for Sanchez, how many work crows should Sanchez have on its permanent payroll? A payroll containing work crews is the lowest cost alternative, with expected weekly costs to Sanchez of $ (Enter your responses as integers.)
Sanchez Trucking has been experiencing delays at its warehouse operations Management hired a consultant to find out why service deliveries to local businesses have taken longer than they should. The consultant narrowed down the problem to the number of work crews loading and unloading trucks. Each crew consists of 6 employees who work as a team on a variety of tasks; each employee works a full 40 hours a week. However, costs are also a concem. The consultant advised management that they could supplement work crews with short-term employees, at a higher cost, to cover unexpected needs on a weekly basis. Each work crew permanently hired by Sanchez costs $3,600 per week in wages and benefits, while a crew of short-term employees costs $5,600 per week. Complicating the decision is the fact that the weekly hourly requirements for work crews is uncertain because of the volatility in the number of deliveries to be made. Deliberating with management, the consultant arrived at the following data. O 960 1,200 1,440 Requirements (man-hours) Probability 1,680 0.2 0.1 0.5 0.2 Number of crews 4 5 6 7 If the consultant wants to offer a solution that minimizes the expected weekly costs for Sanchez, how many work crows should Sanchez have on its permanent payroll? A payroll containing work crews is the lowest cost alternative, with expected weekly costs to Sanchez of $ (Enter your responses as integers.)
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Transcribed Image Text:Sanchez Trucking has been experiencing delays at its warehouse operations. Management hired a consultant to find out why service deliveries to local businesses
have taken longer than they should. The consultant narrowed down the problem to the number of work crews loading and unloading trucks. Each crew consists of 6
employees who work as a team on a variety of tasks; each employee works a full 40 hours a week. However, costs are also a concem. The consultant advised
management that they could supplement work crews with short-term employees, at a higher cost, to cover unexpected needs on a weekly basis. Each work crew
permanently hired by Sanchez costs $3,600 per week in wages and benefits, while a crew of short-term omployees costs $5,600 per week. Complicating the decision
is the fact that the weekly hourly requirements for work crews is uncertain because of the volatility in the number of deliveries to be made. Deliberating with
management, the consultant arrived at the following data.
960
1,200
Requirements (man-hours)
Probability
1,440
0.2
1,680
0.2
0.1
0.5
Number of crews
4
5
6
7
If the consultant wants to offer a solution that minimizes the expected weekly costs for Sanchez, how many work crows should Sanchez have on its permanent payroll?
A payroll containing work crews is the lowest cost alternative, with expected weekly costs to Sanchez of $ (Enter your responses as integers.)
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