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Homework 3 - Chapter 13 (20 points) Due at the beginning of the class on April 28 The Atlantic Coast Shipping Company has a warehouse terminal in...
The Atlantic Coast Shipping Company has a warehouse terminal in Spartanburg, South Carolina. The capacity of each terminal dock is three trucks. As trucks enter the terminal, the drivers receive numbers; and when one of the three dock spaces becomes available, the truck with the lowest number enters the vacant dock. Truck arrivals are Poisson distributed, and the unloading and loading times (service times) are exponentially distributed. The average arrival rate at the terminal is five trucks per hour, and the average service rate per dock is three trucks per hour (20 minutes per truck).
a. What are L, , W, ?
b. The management of the shipping company is considering adding extra employees and equipment to improve the average service time per terminal dock to 15 minutes per truck. It would cost the company $18,000 per year to achieve this improved service. Management estimates that it will increase its profit by $750 per year for each minute it is able to reduce a truckâs waiting time. Determine whether management should make the investment.
Notes:
1. Computer solution is suggested, but please copy and paste âsolutionâ snapshots.
2. Please write down the results along with your analysis.
3. Please type your work or 20% credits will be deducted.
