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CASE STUDIES CASE 1: Saveway Supermarkets Saveway Supermarkets is a major food retailer in upstate New York. The chain has over 60 stores that receive merchandise from their Rochester, New York, warehouse. The warehouse receives shipments of merchandise throughout the day from the various vendors and manufacturers with whom Saveway does business. The Rochester warehouse has eight loading docks avail able for delivery of goods. Trucks arrive at the warehouse ap- proximately once every six minutes according to a Poisson process. If all the loading docks are occupied, an arriving truck waits in a queue until a dock becomes available. Currently, each dock is staffed by a single worker, who unloads a truck in an average of 30 minutes. Saveway man agement has been getting complaints from some of its sup- pliers that their truckers are spending too much time un loading merchandise at the Rochester warehouse. Hence, Saveway has come up with a number of possible strategies to address this problem: (1) hire a second worker for each loading dock, reducing the average time to unload a truck to 18 minutes (workers earn $16 per hour in salary and benefits): (2) equlp each loading dock with an electric forklift that can be leased for $5 per hour and reduce the time required to unload a truck to an average of 24 minutes or (3) build up to two more loading docks (accounting for capital costs, each dock will cost Saveway S6 per hour to build). While strategies 1 and 2 are mutually exclusive, the firm may decide to implement strategy 3 either alone or in com- bination with 1 or 2. Saveway estimates the goodwill cost of a delivery truck being in the system at $60 per hour Prepare a business report recommending a course of ac tion to Saveway management assuming the objective is to minimize total system costs. Assume that service times for each option follow exponential distributions include in your report a comparison of the system parameters of your rec ommendation to those of current operations