## What is average number of trucks

Question

a) What is average number of trucks (to the nearest 0.1 trucks) in the unloading system?

b) What is average time per truck (to the nearest 0.1 minutes) in the system?

c) What is the utilization rate (to the nearest 0.01) for the bin area (enter as decimal – not percentage – i.e. enter 0.34 to represent 34% – do not enter 34)?

d) What is the total daily cost (to the nearest \$/day) to the farmers for having their trucks tied up in the unloading process? (Hint: this is not the same as the cost per truck per day)

e) The cooperative, as mentioned, uses the storage bin only two weeks per year. So their annual costs are based on the costs during these two weeks. What is the annual waiting cost (to the nearest \$) for the trucks during the unloading process (based on your total daily cost and the fact that they only deliver their loads during a two week span)?

f) The farmers estimate that enlarging the bin would cut unloading costs by 50%. It would cost\$9,000 to enlarge the bin. What would be the net savings (to the nearest \$) be if the bin is enlarged? (Hint: What is the difference between the cost of enlarging the bin and the savings on the waiting costs)

g) Based on your calculation of net savings – is it worth it to the cooperative to enlarge the storage area?