Answered: Consider a truck terminal with 2…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 6CE: The controller for Dohini Manufacturing Company felt that the number of purchase orders alone did...

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Consider a truck terminal with 2 platforms. Empty trucks’ arrival follows Poisson process with average arrival rate of 2 trucks in an hour. Each platform can load goods with a service time of 28 minutes per truck {negative exponentially distributed}. Assume that an arriving truck can use any available platform.

A. Analyze the problem using queuing theory. If you are the operator of the truck terminal, will you retain the 2 platforms, reduce it to 1, or increase it to at least 3?

B. What is the average length of queue.

C. What is the average time waiting.

D. What is the average time spent in the system.

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