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A transshipment center receives incoming trucks at its loading dock; on average, 1.2 trucks arrive each hour. There is currently a team of two workers at the dock, who unload each shipment in about 30 minutes. Each worker is paid $10 per hour and truck drivers receive $60 per hour.
If a third worker were added to the team, and the service rate increased to 2.4 per hour, would the firm save money?Is it worth adding a fourth worker, and dividing the crew into two teams, so that two trucks could be unloaded at the same time (at the original rate)?
Which option would you recommend?
Support your answer with numerical analysis.
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