Treat trucks-milk as continuous flow process

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Reference no: EM132284608

Oberweis is a dairy company based out of Chicago. Oberweis produces milk at a fixed rate of 6,000 gallons/hour. Oberweis serves clients who, in total, request 100,000 gallons of milk per day. Clients send trucks to pick up their orders, and trucks arrive uniformly from 8am to 6pm. If Oberweis runs out of milk, trucks will wait until enough is produced to satisfy their client’s requests.

Per Oberweis policy, the company begins and ends each day with 24,000 gallons in finished goods inventory. The plant begins its daily production at 8am and closes once it has satisfied all client demand and replenished its finished goods inventory. In your analysis, treat trucks/milk as a continuous flow process.

1. How many hours after 8am does a truck queue form?

2. How many hours after 8am does the truck queue length return to zero?

3. Assume that each client requests 2,000 gallons of milk (and so sends a truck with this amount of storage). What is the maximum length of the truck queue (measured in trucks)?

4. If Oberweis were charged $30 per hour per waiting truck, how much would Oberweis be charged per day (in dollars)?

Reference no: EM132284608

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