Consider a large distribution centre (DC) that sees the arrival of, on average,
ID: 3152228 • Letter: C
Question
Consider a large distribution centre (DC) that sees the arrival of, on average, 40 trucks per 8-hour workday (assume a Poisson distribution). The unloading of a truck at one of the unloading docks takes, on average 45 minutes (assume exponential distribution). The docks operate for 8 hours per day. If a dock is not available, trucks wait in a common line for the next available dock. The truckers charge the DC $25 per hour (or portion thereof) for waiting (not including unloading). The cost to operate a dock is $40 per hour (assume this to be a fixed cost that does not depend on utilization of the dock). Determine the total average cost (dock costs plus truck waiting costs) per hour if five docks are operated.
between $200 and $225 per hour
between $225 and $250 per hour
between $250 and $275 per hour
between $275 and $300 per hour
More than $300 per hour
a.between $200 and $225 per hour
b.between $225 and $250 per hour
c.between $250 and $275 per hour
d.between $275 and $300 per hour
e.More than $300 per hour
Explanation / Answer
The correct option is: C
Between $250 and $275 per hour.
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