How many ports should rivian install at this location

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Reference no: EM133298732

Case: Rivian, the first all-electric truck company, produces R1T (pickup trucks) and R1S (SUV) models that are designed to appeal to outdoor enthusiasts. Blue Ridge Parkway (which runs from the Shenandoah Park in Virginia to the Great Smoky Mountains National Park in North Carolina) is very popular among this population, and Rivian has decided to install charging stations for travelers along this Parkway. Rivian needs to determine the number of charging stations, location of the stations, and capacity (number of ports) of different stations. See Appendix 1 for definitions.

One of the locations that Rivian is considering is a spot in the parking lot at the entrance to a scenic trail. Travelers wanting to enjoy the trail park their vehicles in the lot and spend about 1.5 hours on the trail. Travel data suggests peak arrival rate of 3.7 vehicles per hour to this spot. The CV of the inter-arrival time is 1. The average charging time per vehicle is 30 minutes and CV of the service time is 0.2.

The costs of ports for a station are as follows:

Number of charging ports	Cost per port
1 port	$73,900
2 ports	$64,600
4 ports	$55,400
6 ports	$46,100

Question: How many ports should Rivian install at this location? Justify your answer.

Reference no: EM133298732

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