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The manager of the regional warehouse should decide on number of loading docks to request for the new facility in order to reduce the sum of dock costs and driver-truck costs. The manager has learned that each driver-truck combination represents the cost of $300 per day and that each dock plus loading crew represents the cost of $1,100 per day.

a. How many docks must be requested if trucks arrive at the rate of 3 per day, each dock can handle five trucks per day, and both rates are Poison?

b. An employee has recommended adding new equipment which would speed up the loading rate to 4.2856 trucks per day. The equipment would cost $100 per day for each dock. Must the manager invest in new equipment?

Project Management, Management Studies

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