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
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.
| 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 |
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