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