OPERATIONS MANAGEMENT CUSTOM ACCESS
OPERATIONS MANAGEMENT CUSTOM ACCESS
11th Edition
ISBN: 9780135622438
Author: KRAJEWSKI
Publisher: PEARSON EDUCATION (COLLEGE)
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Chapter B, Problem 17P
Summary Introduction

Interpretation: The best alternatives to reduce the average time should be recommended.

Concept Introduction: Utilization rate is average the time spend by a person in productivity activity. It is calculated as percentage.

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You are in charge of a quarry that supplies sand and stone aggregates to your company’s construction sites. Empty trucks from construction sites arrive at the quarry’s huge piles of sand and stone aggregates and wait in line to enter the station, which can load either sand or aggregate. Atthe station, they are filled with material, weighed, checked out, and proceed to a construction site. Currently, nine empty trucks arrive per hour, on average. Once a truck has entered a loading station, it takes 6 minutes for it to be filled, weighed, and checked out. Concerned that trucks are spending too much time waiting and being filled, you are evaluating two alternatives to reduce the average time the trucks spend in the system. The first alternative is to add side boards to the trucks (so that more material could be loaded) and to add a helper at the loading station (so that filling time could be reduced) at a total cost of $50,000. Thearrival rate of trucks would change to six per hour, and…
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