Trucks arrive at the loading dock of a wholesale grocer at the rate of 1.2 per hour. A single crewconsisting of two workers can load a truck in about 30 minutes. Crew members receive $10 perhour in wages and fringe benefits, and trucks and drivers reflect an hourly cost of $60. The manager is thinking of adding another member to the crew. The service rate would then be 2.4 trucksper hour. Assume rates are Poisson.a. Would the third crew member be economical?b. Would a fourth member be justifiable if the resulting service capacity were 2.6 trucks per hour?
Trucks arrive at the loading dock of a wholesale grocer at the rate of 1.2 per hour. A single crewconsisting of two workers can load a truck in about 30 minutes. Crew members receive $10 perhour in wages and fringe benefits, and trucks and drivers reflect an hourly cost of $60. The manager is thinking of adding another member to the crew. The service rate would then be 2.4 trucksper hour. Assume rates are Poisson.a. Would the third crew member be economical?b. Would a fourth member be justifiable if the resulting service capacity were 2.6 trucks per hour?
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...
Related questions
Question
Trucks arrive at the loading dock of a wholesale grocer at the rate of 1.2 per hour. A single crew
consisting of two workers can load a truck in about 30 minutes. Crew members receive $10 per
hour in wages and
per hour. Assume rates are Poisson.
a. Would the third crew member be economical?
b. Would a fourth member be justifiable if the resulting service capacity were 2.6 trucks per hour?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
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…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.