stat week 5
sbatniji
Warehouse Operations (M/M/1)
George Foster is responsible for the warehouse operation for a local discount department store chain. The warehouse has only one unloading dock that is currently operated by a single 3-person crew. Trucks arrive according to the Poisson distribution with an average rate of 5 per hour. The average time to one of the crews to unload a truck is 9 minutes, which tends to follow the exponential distribution. George has estimated the cost of operating a truck at $40 per hour. George pays each person of the unloading crew $11 per hour. The unloading dock operates 8 hours each day. George is considering the economic feasibility of adding a second 3-person crew to the unloading operation. George estimates adding this second crew will reduce the average unloading time to 6 minutes per truck. This will still be an M/M/1 system, since only one truck can be unloaded at any given time. Should George add the second crew?