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A plant distributes its products by truck. The exponential average loading time per truck at the loading facility is 20 minutes. Trucks arrive at
A plant distributes its products by truck. The exponential average loading time per truck at the loading facility is 20 minutes. Trucks arrive at a rate of 2/hour. Management feels that the existing loading facility is more than adequate. However, the drivers complain that they have to wait more than half of the time. Analyze the situation and find how much money the company can save if the waiting time of a truck is figured at P10/hr and the plant is in operation 8 hours per day. An automatic device that can load 10 trucks per hour is available at a cost of P90/day over the cost of the existing facility.
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