Answered: Ships arrive at a port facility at an…

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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Ships arrive at a port facility at an average rate of two ships every three days. On average, it takes a single crew one day to unload a ship. Assume that interarrival and service times are exponential. The shipping company owns the port facility as well as the ships using that facility. The company estimates that it costs $1000 per day for each day that a ship spends in port. The crew servicing the ships consists of 100 workers, each of whom is paid an average of $30 per day. A consultant has recommended that the shipping company hire an additional 40 workers and split the employees into two equal-size crews of 70 each. This would give each crew an average unloading or loading time of 1.5 days. Which crew arrangement would you recommend to the company?

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