Reference no: EM131090715

Please see the attachment it has diagram included in it.

The project should be 3 pages. Following are the details of project-Review Case 5.3 "Boise Cascade Corporation" (Groebner p.222). Make the necessary computations and write a short report discussing your answers and findings.

Important:

You will need to analyze the probability of various numbers of trucks arriving and hence provide input as to how many scaling stations should be open.

The random arrival of trucks follows a Poisson distribution, and that distribution with a mean of 12 will be used to analyze the problem.

You will use the Excel formula Poisson.Dist (Formulas > More Functions > Statistical); with this you will develop a table with one column containing "X" (the number of trucks arriving), and a second column which is the probability of 0, 1, 2, etc., trucks arriving. Use Excel for this. See the example on p. 209 of the text book (Heritage Tile Example) using steps 1 through 6 of the "Excel 2010 Instructions" on p.209. For your Case 5.3, you will want an "x" column for values from 1 to 20 (column A), then in column B find the probability for each X value using the POISSON.DIST function (notice the instructions tell you to put FALSE in the "Cumulative" input box. (You want the probability of exactly zero trucks arriving, the probability of exactly 1 truck arriving, etc.)

You will use these columns to estimate the probability of 0 to 6 trucks arriving per hour, 7 to 12 trucks arriving per hour, etc. (since each scale station can handle 6 trucks per hour).

Ensure that your final report Includes a cover sheet (see attachment below), brief introduction, analysis with your answers, conclusions, and bibliography (Using APA 6^thEdition format).Your assignment will be evaluated based both on statistical proficiency and presentation.

At the Boise Cascade Corporation, lumber mill logs arrive by truck and are scaled (measured to determine the number of board feet) before they are dumped into a log pond. Figure C-5.3 illustrates the basic flow. The mill manager must determine how many scale stations to have open during various times of the day. If he has too many stations open, the scalers will have excessive idle time and the cost of scaling will be unnecessarily high. On the other hand, if too few scale stations are open, some log trucks will have to wait.

FIGURE C-5.3 Truck Flow for Boise Cascade Mill Example

The manager has studied the truck arrival patterns and has determined that during the first open hour (7:00 A.M.-8:00 A.M.), the trucks randomly arrive at 12 per hour on average. Each scale station can scale 6 trucks per hour (10 minutes each). If the manager knew how many trucks would arrive during the hour, he would know how many scale stations to have open.

0 to 6 trucks:	open 1 scale station
7 to 12 trucks:	open 2 scale stations etc.

However, the number of trucks is a random variable and is uncertain. Your task is to provide guidance for the decision.