Problem Set 6

Solve problems 14–10 and 14–15.

14-10

Number of Clerks 1 2 3 4

(a) Average number of customers per Saturday 300 300 300 300

(b) Average waiting time per customer (minutes) 10 6 4 3

(c) Total waiting time per Saturday (a X b) (minutes) 3000 1800 1200 900

$.1666 $.1666 $.1666

(d) Cost per minute of waiting time (est) (1/6 per hour) 7 7 7 $.16667

(e) Value of lost time (c X d) per Saturday $500 $300 $200 $150

(f) Salary cost per Saturday $64 $128 $192 $256

(g) Total cost per Saturday $564 $428 $392 $406

Total cost for 1, 2, 3, and 4 clerks are $564, $428, $392, and $406, respectively.

The optimal number of clerks to have on duty each Saturday to minimize the store’s total
expected cost is 3 clerks with a total store cost of $392.

14-15

Parameter Value Parameter Value Minutes Seconds

Single-channel Average Server Utilization .86

System

Arrival rate (lambda) 30 Average number in the queue 5.14

(Lq)

Service rate (mµ) 35 Average number in the system 6

(Ls)

Number of servers 1 Average time in the queue (Wq) .17 10.29 617.14

Server cost $/time 0 Average time in the system .2 12 720

 (Ws)

Waiting cost $/time 18 Cost(Labor + # waiting*wait 92.57

cost)

Cost (Labor + # in system*wait 108

cost)

(a) Average number of trucks in the unloading system is 6.

L = λ/µ-λ = 30/35-30 = 30/5 = 6

(b) average time per truck in the system is 12 minutes.

W = 1/µ-λ = 1/35-30 = 1/5 = .2 hour = 12 minutes

(c) utilization rate for the bin area is .857.

p = λ/mµ = 30/1(35) = 30/35 = .857

(d) Probability that there are more than three trucks in the system at any given time is .549.

pn>k = (λ/µ)k+1 = pn>3 = (30/35)3+1 = (.857)4 = .549

(e) Total daily cost to the farmers of having their trucks tied up in the unloading process is
$1,481.12.

Wq = λ/µ(µ-λ) = 30/35(35-30) = 30/35*5 = 30/175 = .17

Total Waiting Cost = (λWq)Cw = 30(.17)18 = $92.57/hr

Total Daily Cost = (16 hours)(λWq)Cw = (16)(92.57) = $1,481.12

Total Harvest Season Cost = $1,481.12 * 14 days = $20,735.68

Estimation of unloading costs cuts = $20,735.68*.50 = $10,367.84 savings

Unloading Costs Savings + Enlargement Costs = $10,367.84 + $9,000.00 = $19,367.84

Savings after enlargement = $20,735.68 - $19,367.84 = $1,367.84 for 1st year.

Therefore it would be worthwhile for the cooperative to enlarge the storage area.