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How much could the firm save

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Reference no: EM131619849

Question: A building-materials firm loads trucks with two pay loader tractors. The distribution of truck-loading times has been foqnd to be exponential with a mean loading_ time of 6 minutes. The truck interarrival time is exponentially distributed with an arrival rate of 16 per hour. The waiting time of a truck and driver is estimated to cost $50 per hour. How much (if any) could the firm save (per 10 hour day) if an overhead hopper system that would fill any truck in a constant time of 2 minutes is installed? (Assume that the present tractors could and would adequately service the conveyors loading the hoppers.)

Reference no: EM131619849

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