Compute cost of servers and cost associated with trucks

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Reference no: EM132307695

The manager of a warehouse must decide on the number of loading docks to request fo 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 $600 per day and that each dock plus loading crew represents a cost of $1,000 per day.

a. How many docks should be requested if trucks arrive at the rate of three per day, each dock can handle five trucks per day, and both rates are Poisson? Show support to your answer.

b. An employee has proposed adding new equipment that would speed up the loading rate to 5.71 per day. The equipment would cost $100 per day for each dock.

Hint: For parts (a) and (b), compute the cost of the servers (per day) and the cost associated with trucks and drivers in the system per day.

Reference no: EM132307695

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