Reference no: EM132140811

Sid Das Brick Distributors currently employs 1 worker whose job is to load bricks on outgoing company trucks.  An average of 24 trucks per day, or 3 per hour, arrive at the loading platform, following a Poisson distribution.  The worker loads them at a rate of 4 trucks per hour, following approximately the exponential distribution in his service times.

Das believes that adding a second brick loader will substantially improve the firm’s productivity.  He estimates that a two-person crew at the loading gate will double the loading rate from 4 trucks per hour to 8 trucks per hour.  The following is an analysis of the effect on the queue of such a change:

                                                         Number of Brick Loaders

                                                                   1                           2

Truck arrival rate (?)                               3/hr.                     3/hr.

Loading rate (µ)                                       4/hr.                     8/hr.

Average number in system (Ls)             3 trucks               0.6 truck

Average time in system (Ws)                 1 hr.                     0.2 hr.

Average number in queue (Lq)               2.25 trucks          0.225 truck

Average time in queue (Wq)                  0.75 hr.                0.075 hr.

Truck drivers working for Sid Das earn an average of $15 per hour.  Brick loaders earn about $9 per hour.  Truck drivers waiting in the queue or at the loading platform are drawing a salary but are productively idle and unable to generate revenue during that time.

What would be the HOURLY cost savings to the firm if it employed 2 loaders instead of 1.  Be sure to show your work.