The management of the American Parcel Service terminal in Verona, Wisconsin, is concerned about the amount oftime the company’s trucks are idle (not delivering on the road), which the company defines as waiting to be unloadedand being unloaded at the terminal. The terminal operates with four unloading bays. Each bay requires a crew of twoemployees, and each crew costs $30 per hour. The estimated cost of an idle truck is $50 per hour. Trucks arrive atan average rate of three per hour, according to a Poisson distribution. On average, a crew can unload a semitrailerrig in one hour, with exponential service times. What is the total hourly cost of operating the system?
The management of the American Parcel Service terminal in Verona, Wisconsin, is concerned about the amount oftime the company’s trucks are idle (not delivering on the road), which the company defines as waiting to be unloadedand being unloaded at the terminal. The terminal operates with four unloading bays. Each bay requires a crew of twoemployees, and each crew costs $30 per hour. The estimated cost of an idle truck is $50 per hour. Trucks arrive atan average rate of three per hour, according to a Poisson distribution. On average, a crew can unload a semitrailerrig in one hour, with exponential service times. What is the total hourly cost of operating the system?
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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The management of the American Parcel Service terminal in Verona, Wisconsin, is concerned about the amount of
time the company’s trucks are idle (not delivering on the road), which the company defines as waiting to be unloaded
and being unloaded at the terminal. The terminal operates with four unloading bays. Each bay requires a crew of two
employees, and each crew costs $30 per hour. The estimated cost of an idle truck is $50 per hour. Trucks arrive at
an average rate of three per hour, according to a Poisson distribution. On average, a crew can unload a semitrailer
rig in one hour, with exponential service times. What is the total hourly cost of operating the system?
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