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The wheat harvesting season in the American Midwest is short, and farmers deliver their truckloads of wheat to a giant central storage bin within a 2-week span. Because of this, wheatfilled trucks waiting to unload and return to the fields have been known to back up for a block at the receiving bin. The central bin is owned cooperatively, and it is to every farmer's benefit to make the unloading/storage process as efficient as possible. The cost of grain deterioration caused by unloading delays and the cost of truck rental and idle driver time are significant concerns to the cooperative members. Although farmers have difficulty quantifying crop damage, it is easy to assign a waiting and unloading cost for truck and driver of $18\$ 18 per hour. During the 2-week harvest season, the storage bin is open and operated 16 hours per day, 7 days per week, and can unload 35 trucks per hour according to a negative exponential distribution. Full trucks arrive all day long (during the hours the bin is open) at a rate of about 30 per hour, following a Poisson pattern. To help the cooperative get a handle on the problem of lost time while trucks are waiting in line or unloading at the bin, find the following:

As mentioned, the cooperative uses the storage bin heavily only 2 weeks per year. Farmers estimate that enlarging the bin would cut unloading costs by 50%50 \% next year. It will cost $9,000\$ 9,000 to do so during the off-season. Would it be worth the expense to enlarge the storage area?

Question

The wheat harvesting season in the American Midwest is short, and farmers deliver their truckloads of wheat to a giant central storage bin within a 2-week span. Because of this, wheatfilled trucks waiting to unload and return to the fields have been known to back up for a block at the receiving bin. The central bin is owned cooperatively, and it is to every farmer's benefit to make the unloading/storage process as efficient as possible. The cost of grain deterioration caused by unloading delays and the cost of truck rental and idle driver time are significant concerns to the cooperative members. Although farmers have difficulty quantifying crop damage, it is easy to assign a waiting and unloading cost for truck and driver of $18\$ 18 per hour. During the 2-week harvest season, the storage bin is open and operated 16 hours per day, 7 days per week, and can unload 35 trucks per hour according to a negative exponential distribution. Full trucks arrive all day long (during the hours the bin is open) at a rate of about 30 per hour, following a Poisson pattern. To help the cooperative get a handle on the problem of lost time while trucks are waiting in line or unloading at the bin, find the following:

The utilization rate for the bin area

Solution

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In this problem, we are asked to determine the probability that the bin area is busy.

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