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Ships arrive at a port facility at an average rate of 2 ships every 3 days. On the average, it takes a single crew 1 day to unload a ship. Assume that interarrival and service times are exponential. The shipping company owns the port facility as well as the ships using that facility. It is estimated to cost the company $1,000 per day that each ship spends in port. The crew servicing the ships consist of 100 workers, who are each paid an average of $30 per day. A consultant has reccomended that the shipping company hire an additional 40 workers and split the employees into two equal-sized crews of 70 each. This would give each crew an unloading or loading time average 3/2 days. Which crew arrangement would you reccomend to the company?

Operation Management, Management Studies

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