MGMT 3320 - Operations Management Fall 2020 Name: 3. (20 Points) The Seaboard Shipping company owns a warehouse terminal that is configured with three loading docks that operates 24/7. As trucks enter the terminal grounds, drivers are given a number and when one of the three docks becomes available, the truck with the lowest number enters the vacant dock for loading/unloading. The arrival times for the trucks and the service times for loading and unloading are both exponentially distributed. Trucks arrive at an average rate of 5 trucks/hour and on average it takes 30 minutes to unload a truck at each of the three docks. a. (10 Points) On average, how long does a truck wait to be called to an available dock? b. (10 Points) Management has decided that it must reduce the amount of time trucks spend waiting at the warehouse. Management is considering two options. Either a fourth dock can be added that will have the same average service time or additional employees can be hired to reduce the average service time from 30 minutes/truck to 23 minutes/truck at each of the three existing loading docks. Since the cost of these alternatives are roughly the same, so management will choose the alternative that results in the largest reduction in the average waiting time for the trucks. Which alternative should management select? Why