Bectol, Inc
Subject:StatisticsPrice: Bought3
Bectol, Inc. is building a dam. A total of 10 million cu ft of dirt is needed to construct the dam. A bulldozer is used to collect dirt for the dam. Then the dirt is moved via dumpers to the dam site. Only one bulldozer is available, and it rents for $100 per hour. Bectol can rent, at $40 per hour, as many dumpers as desired. Each dumper can hold 1,000 cu ft of dirt. It takes an average of 12 minutes for the bulldozer to load a dumper with dirt, and each dumper an average of five minutes to deliver the dirt to the dam and return to the bulldozer. Making appropriate assumptions about exponentiality, determine how Bectol can minimize the total expected cost of moving the dirt needed to build the dam. (Hint: There is a machine repair problem somewhere!)
