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The wheat harvesting session in Saskatchewan is short, and farmers deliver their truckloads of wheat to a giant central storage bin within a 2 -

The wheat harvesting session in Saskatchewan is short, and farmers deliver their truckloads of
wheat to a giant central storage bin within a 2-week span. Because of this, what filled trucks
waiting to unload and return to the fields have been known to back up for a block at the receiving
bin. The central bin is owned cooperatively, and it is to every farmers benefit to make the
unloading/storage process as efficient as possible. The cost of grain deterioration caused by
unloading delays and the cost of truck rental and idle driver time are significant concerns to the
cooperative members. Although farmers have difficulty quantifying crop damage, it is easy to assign
a waiting and unloading cost for truck and driver of $18.5 per hour. During the 2-week harvest
season, the storage bin is open and operated 15 hours per day, 7 days per week, and can unload 35
trucks per hours according to an exponential distribution. Full trucks arrive all day long (during the
hours the bin is open) at an average interval of 2 minutes (assume Poisson arrivals).
a) What is the average number of trucks and the average waiting time per truck in the system?
b) What fraction of time do you expect that there are three or less trucks in the system?
c) As mentioned, the cooperative uses the storage bin heavily only 2-weeks per year. Farmers
estimate that enlarging the bin would cut unloading cost by 50% next year. It would cost $9,000 to
do so during the off season. Would it be worth the expense to enlarge the storage area? Explain.

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