The sanitary landfill charges companies $200 per load and individuals $50 per load. On average, 20 individuals and 90 companies are served each day at the landfill with a standard deviation of 10 and 30, respectively. There is time only for 110 deliveries in any combination of companies and individuals throughout the course of an eight-hour day. Company dump trucks enter through Gate A and individuals enter through Gate B. It costs the landfill $30 to process a company dump truck and $15 to process an individual load. What is the expected profit for one day if the landfill exercises revenue management? A. True ✓ The landfill aims to assign an optimal capacity to individuals so as to minimize the expected cost of spoilage and spill. B. False c. More than 19000 dollars D. 18500 dollars E. None of the given choices F. There is insufficient information to make a decision. G.Less than 18000 dollars
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- During nearly four decades of business operations, Memphis-based FedEx has earned a reputation for reliable, on-time delivery of packages to homes and offices around the country. Founder Fred Smith originally focused on overnight deliveries, choosing Memphis as the company’s headquarters because the airport rarely closes due to bad weather. With FedEx’s planes departing and arriving on schedule nearly all the time, its express shipments usually remained on schedule, then and now. To reassure customers that delivery will take place when and where promised, the firm offers a money-back guarantee on time-sensitive express shipments, among other services. FedEx has steadily expanded its portfolio of services since the 1970s. Its original overnight express delivery is currently available to U.S. customers in various forms, including “first-overnight” delivery, next-morning delivery, next-afternoon delivery, and budget-pleasing two- or three-day delivery. The company’s services also include cost-effective ground delivery for parcels and extra-speedy same-day delivery for urgent deliveries within 1,800 cities. Over the years, FedEx has widened its delivery network to more than 220 countries. It has purchased more cargo jets and acquired specialized shipping firms, including Tiger International, Roberts Express, RPS, and TNT Express, to support global growth. For international business customers needing products, parts, or raw materials shipped across countries or continents, the company now offers time-saving services such as commercial freight forwarding and cross-border logistical support. To add the convenience of local drop-off and pickup points for U.S. consumers and small businesses, FedEx acquired the Kinko’s office services company in 2004 and later rebranded it as FedEx Office. This acquisition also added printing and copying to the menu of services offered. Then the company arranged for large U.S. retailers such as Walgreens, Albertsons, Kroger, and Safeway to accept packages for shipment and receive package delivery for customer pickup in thousands of store locations. This means people who want to send a package can head to a nearby retailer and ship where they shop, rather than making a separate trip to the FedEx location. It’s also a safe alternative for packages to be picked up by people who don’t want FedEx shipments left by the front door. Another service FedEx offers to small and mid-sized businesses, including retailers, is FedEx Fulfillment. The purpose is to expedite order fulfillment by having each business store its products in a FedEx warehouse. Then, when the business’s customers place orders, FedEx puts the products into boxes bearing the business’s own logo and ships directly to those customers. The business doesn’t need a separate warehouse or staff for fulfillment, and packages are on their way to customers more quickly because the products were in FedEx’s warehouse, ready to be packed and shipped. This service puts FedEx into direct competition with Amazon.com, which offers a similar service to merchants that sell through the online Amazon Marketplace. But it also gives businesses that don’t sell via Amazon a fast and professional fulfillment alternative. FedEx is careful to let customers know, through media and social-media announcements, when it anticipates that extreme weather or other conditions will cause delays or force it to halt pickups and deliveries. For the duration of Hurricane Irma, for example, FedEx said it would suspend deliveries in Florida. Some Florida customers who had ordered generators to be delivered via FedEx were unhappy, because they worried about being without power during and after the storm. But one FedEx employee loaded several generator orders into his car and took them to customers himself. When a customer posted a grateful compliment to FedEx on Facebook, the message generated thousands of likes, shares, and positive comments. The company also received positive comments for its donations of cash and transportation services to areas devastated by Hurricanes Irma, Harvey, and Maria. According to the American Customer Satisfaction Index (ACSI), FedEx often tops the list of U.S. shipping companies as ranked by customers surveyed. Every day, the company delivers 13 million packages—and during the busy year-end holiday season, it delivers many more. By meeting customers’ expectations for on-time deliveries, FedEx has increased annual revenues beyond $60 billion and positioned itself for continued growth in the future. How does FedEx’s money-back guarantee address customers’ concerns about heterogeneity?Customers arrive in a barber shop at an average rte of five per hour, the actual arrivals being Poisson distributed. There is one barber on duty at all times and there are four chairs for customers who arrive when the barber is busy. Local fire ordinances limit the total number of customers in the shop at the same time to maximum of five. Customers who arrive when the shop is full are denied entrance and their business is presumed lost. The barber's service time is exponentially distributed, but the mean changes with the number of customers in the shop. As the shop fills, the barber tries to speed service, but actually becomes less efficient, as shown in the following table: Number in Shop Mean Service Time, minute 1 9 2 10 Determine: a) the probability that the barber is idle. Answer in 4 decimal places. b) the average number of people in the shop at the same time. Answer in 3 decimal places. 3 12 4 15 5 20Cakes baked by the Freshfood Bakery are transported from the ovens to be packaged by one of three wrappers. Each wrapper can wrap an average of 200 cakes per hour. The cakes are brought to the wrappers at the rate of 500 per hour. If a cake sits longer than 5 minutes before being wrapped, it will not be fresh enough to meet the bakery’s quality control standards. Does the bakery need to hire another wrapper?
- Cakes baked by the Freshfood Bakery are transported fromthe ovens to be packaged by one of three wrappers. Eachwrapper can wrap an average of 120 cakes per hour (Poissondistributed). The cakes are brought to the wrappers at therate of 300 per hour (Poisson distributed). If a cake sitslonger than 5 minutes before being wrapped, it will not befresh enough to meet the bakery’s quality control standards.Does the bakery need to hire another wrapper?At the Smalltown post office, patrons wait in a singleline for the first open window. An average of 100 patronsper hour enter the post office, and each window can servean average of 45 patrons per hour. The post office estimatesa cost of 10¢ for each minute a patron waits in line andbelieves that it costs $20 per hour to keep a window open.Interarrival times and service times are exponential.a To minimize the total expected hourly cost, howmany windows should be open?b If the post office’s goal is to ensure that at most 5%of all patrons will spend more than 5 minutes in line,how many windows should be open?The Delacroix Inn in Alexandria is a small, exclusive hotel with 20 rooms. Guests can call housekeeping from 8:00 A.M. to midnight for any of their service needs. Housekeeping keeps one person on duty during this time to respond to guest calls. Each room averages 0.7 call per day to housekeeping (Poisson distributed), and a guest request requires an average of 30 minutes (exponentially distributed) for the staff person to respond to and take care of. Determine the portion of time the staff person is busy and how long a guest must wait for his or her request to be addressed. Does the housekeeping system seem adequate?
- The sanitary landfill charges companies $200 per load and individuals $50 per load. On average, 90 companies tip their trucks each day at the landfill with a standard deviation of 30. There is time only for 110 deliveries in any combination of companies and individuals throughout the course of an eight-hour day. Company dump trucks enter through Gate A and individuals enter through Gate B. Individual demand is plentiful – often there are individuals turned away due to lack of capacity. It costs the landfill $30 to process a company dump truck and $15 to process an individual load. What is the expected profit for one day if the landfill allocates the optimal quantity of capacity to company trucks and individuals fill up the remainder of the сараcity? -The Peachtree Airport in Atlanta serves light aircraft. It has a single runway and one air trafficcontroller to land planes. It takes an airplane 12 minutes to land and clear the runway. Planes arriveat the airport at the rate of four per hour. The FAA has a rule that an air traffic controller can, on average, land planes a maximum of 45 minutes out of every hour. There must be 15 minutes of idle time available to relieve the tension. Will this airport have to hire an extra air traffic controller?