Consider a large distribution centre (DC) that sees the arrival of, on average,
ID: 448104 • 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 $30 per hour (or portion thereof) for waiting (not including unloading). The cost to operate a dock is $50 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 six docks are operated.
between $300 and $305 per hour
between $305 and $310 per hour
between $310 and $315 per hour
between $315 and $320 per hour
more than $320 per hour
a.between $300 and $305 per hour
b.between $305 and $310 per hour
c.between $310 and $315 per hour
d.between $315 and $320 per hour
e.more than $320 per hour
Explanation / Answer
Q ) The cost to operate a dock is $50 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 six docks are operated.
A )
between $310 and $315 per hour
c.between $310 and $315 per hour
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