The firm associated with employing two loaders instead

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Reference no: EM132297993

1. Truck drivers working for Juhn and Sons are paid a salary of $10 per hour on average. Fruit loaders receive about $6 per hour. Truck drivers waiting in the queue or at the loading gate are drawing a salary but are productively idle and unable to generate revenue during that time. What would the hourly cost savings to the firm associated with employing two loaders instead of one?

2. Juhn and sons Wholesale Fruit Distributors are considering building a second platform or gate to speed the process of loading their fruit trucks. This, they think will be even more efficient than simply hiring another loader to help the first platform.

a. Assume that workers at each platform will be able to load 4 trucks per hour each and that trucks will continue to arrive at the rate of 3 per hour. Then apply the preceding equations to find the waiting line’s new operating conditions. Is this new approach indeed speedier than the other two considered?

Reference no: EM132297993

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