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The manager of a regional warehouse must decide on the number of loading docks to request for a new facility in order to minimize the sum of dock costs and driver-truck costs. The manager has learned that each driver-truck combination represents a cost of $205 per day and that each dock plus loading crew represents a cost of $1,118 per day. Use Table 18.4. a. How many docks should be requested if trucks arrive at the rate of four per day, each dock can handle five trucks per day, and both rates are Poisson? Number of dock(s)

The manager of a regional warehouse must decide on the number of loading docks to request for a new facility in order to minimize the sum of dock costs and driver-truck costs. The manager has learned that each driver-truck combination represents a cost of $205 per day and that each dock plus loading crew represents a cost of $1,118 per day. Use Table 18.4. a. How many docks should be requested if trucks arrive at the rate of four per day, each dock can handle five trucks per day, and both rates are Poisson? Number of dock(s)

Essentials of Business Analytics (MindTap Course List)
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter15: Decision Analysis
Section: Chapter Questions
Problem 5P: Hudson Corporation is considering three options for managing its data warehouse: continuing with its...
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The manager of a regional warehouse must decide on the number of loading docks to request for a new facility in order to minimize the sum of dock costs and driver-truck costs. The manager has learned that each driver-truck combination represents a cost of $205 per day and that each dock plus loading crew represents a cost of $1,118 per day. Use Table 18.4. a. How many docks should be requested if trucks arrive at the rate of four per day, each dock can handle five trucks per day, and both rates are Poisson? Number of dock(s) b. An employee has proposed adding new equipment that would speed up the loading rate to 5.71 trucks per day. The equipment would cost an additional $100 per day for each dock. What is the lowest daily total cost that can be achieved with the new equipment? (Round your cost amount to 2 decimal places and all other calculations to 3 decimal places.) The daily total cost with the new equipment is
Transcribed Image Text:The manager of a regional warehouse must decide on the number of loading docks to request for a new facility in order to minimize the sum of dock costs and driver-truck costs. The manager has learned that each driver-truck combination represents a cost of $205 per day and that each dock plus loading crew represents a cost of $1,118 per day. Use Table 18.4. a. How many docks should be requested if trucks arrive at the rate of four per day, each dock can handle five trucks per day, and both rates are Poisson? Number of dock(s) b. An employee has proposed adding new equipment that would speed up the loading rate to 5.71 trucks per day. The equipment would cost an additional $100 per day for each dock. What is the lowest daily total cost that can be achieved with the new equipment? (Round your cost amount to 2 decimal places and all other calculations to 3 decimal places.) The daily total cost with the new equipment is
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