Along the Western coast of India, an oil tanker has fouled 100 miles of the shoreline. Fourteen days have been given to the oil company to clean up the shoreline after which a fine to the amount of Rs 100,000 will be levied per day. The local clean-up crew can scrub 5 miles of the beach per week at the cost of Rs 60,000 per day. Additional crews can be brought in at a cost of Rs 180,000 plus Rs 80,000 per day for each crew. (a) Determine the number of additional crews that the company should buy in order to minimise the total cost. Use the 5-step method described in class. What will be the total cost to the company? (b) Do a sensitivity analysis of the solution (optimal number of crews and the total cost) to the amount of fine levied and the rate at which a crew can clean up the shoreline.

Along the Western coast of India, an oil tanker has fouled 100 miles of the shoreline. Fourteen days have been given to the oil company to clean up the shoreline after which a fine to the amount of Rs 100,000 will be levied per day. The local clean-up crew can scrub 5 miles of the beach per week at the cost of Rs 60,000 per day. Additional crews can be brought in at a cost of Rs 180,000 plus Rs 80,000 per day for each crew. (a) Determine the number of additional crews that the company should buy in order to minimise the total cost. Use the 5-step method described in class. What will be the total cost to the company? (b) Do a sensitivity analysis of the solution (optimal number of crews and the total cost) to the amount of fine levied and the rate at which a crew can clean up the shoreline.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter10: Introduction To Simulation Modeling

Section10.6: The Effects Of Input Distributions On Results

Problem 28P

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