Lift trucks deliver products to a packaging department at a Poisson rate of 125 parts per hour.

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Lift trucks deliver products to a packaging department at a Poisson rate of 125 parts per hour. A unit load is to be designed for the lift truck in order to minimize expected costs. Each trip by the lift truck costs $25. Packaging time is exponentially distributed with a mean of 10 seconds per part using an automatic packaging machine. The cost of parts waiting to be packaged and being packaged is $40 per hour. Determine the optimum size of the unit load.

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Facilities Planning

ISBN: 9780470444047

4th Edition

Authors: James A. Tompkins, John A. White, Yavuz A. Bozer, J. M. A. Tanchoco

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