The management of the American Parcel Service terminal in Verona, Wisconsin, is concerned about the amount of time the company's trucks are idle, waiting to be unloaded. The terminal operates with four unloading bays currently. Each bay requires a crew of two employees and each crew costs $30 per hour (i.e., $15/hour per employee). The estimated cost of an idle truck is $40 per hour. Trucks arrive at an average rate of three per hour and the inter-arrival time is exponential. On average, a crew can unload one truck in one hour, with exponential service times. (Hint: follow the trader 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? (20 points

To minimize the above total hourly operating cost, how many uploading bays should be in operation? Why? (20 points)