Explain why and demonstrate your conclusion with numbers

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Reference no: EM132194999

Aircraft wait for a refueling station at O'Hare field. It takes an average of 20 minutes to completely refuel an airplane, and aircraft arrive at the rate of two planes per hour. Crews have been complaining that it takes too long to get service, and the airport management is considering adding a second station. The station will cost $1000 per day to build and operate. It costs $10,000 an hour for a plane to wait in line. This is the cost of the plane and the crew being tied up during refueling.

a. Would it be a good idea to add the second station? Explain why and demonstrate your conclusion with numbers.

Reference no: EM132194999

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