How many crews should the city assign to trash collection

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Reference no: EM133591036

Question: The residents of Bucktown, Illinois, place their rubbish at the kerb each Wednesday morning to be picked up by municipal crews. Experience shows that the total amount of trash put out has a normal distribution with a mean of 35 tons and a standard deviation of 9 tons. Crews of full-time city employees assigned to trash collection collect the rubbish. Each crew can collect 5 tons of trash per working day. The city has plenty of trash collection trucks. The marginal cost of operating one trash collection crew for one working day, including both personnel-related costs and truckrelated costs, is reckoned at $625. Whatever trash remains at the end of the work day must be collected that evening by an outside contractor who charges $650 per ton. How many crews should the city assign to trash collection? For simplicity, you may treat the number of crews as a continuous variable. For example, 4.1 crews would be a perfectly acceptable answer.

Reference no: EM133591036

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