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Question: The management of the American Parcel Service terminal in Verona,Wisconsin, is concerned about the amount of time the company's trucks are idle, waitingto be unloaded. The terminal operates with four unloading bays currently. Each bayrequires a crew of two employees and each crew costs $30 per hour (i.e., $15/hour peremployee). The estimated cost of an idle truck is $40 per hour. Trucks arrive at anaverage rate of three per hour and the inter-arrival time is exponential. On average, acrew can unload one truck in one hour, with exponential service times. (Hint: follow thetrader example in the slides and use the excel template)
What is the total hourly cost of operating this system including the crew cost and waiting cost?
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