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There are currently 5 docks at the UPS port facility and it takes 3.2 hours to process a truck. The facility operates 12 hours a day 365 days a year. During a year they expect 3900 trucks. The current operational costs are $49K per dock per year. The waiting costs are estimated at $90 per day. UPS wants to determine if eliminating one dock will reduce or increase total costs. Answer the following. Complete all calculations with at least 2 decimal points. Please be sure to upload your notes/calculations after the exam.
What is the arrival rate per day?
What are the WCe when there are 5 docks?
What are the RCe when there are 5 docks?
What are the TCe when there are 4 docks?
How many docks should UPS have to minimize total costs?