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# Case Study Minnetonka Warehouse

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1. Question 1: For each of the four work team sizes, calculate the expected number of trucks in the queue waiting to be unloaded.
• Size of team
• Number of trucks in the queue
• 23. 2 3 . 5 4 . 27 5 . 12
1. Question 2: For each of the four work team sizes, calculate the expected time in the queue—that is, the expected time a truck has to wait in line to be unloaded.
• Size of team
• Expected time in the queue
• 2. 8 hours 3. 125 hours 4. 067 hours 5. 030 hours
1. Question 3: For each of the four work team sizes, what is the probability that a truck cannot be unloaded immediately?
• Size of team
• The probability that truck must wait upon arrival
• 280% 350% 440% 530%
1. Question 4: Which of the four work teams has the lowest cost to Wayne?
• Size of team
• Total cost
• 2\$268. 00 3\$102. 00 4\$96. 00 5\$95. 32
1. Question 5: Wayne is also considering the rental of a forklift to use in truck unloading. A team of only two would be needed, but the hourly cost would be \$38 per hour (\$28 for the workers and \$10 for the forklift).

They could unload a truck in five minutes. Should Wayne rent the forklift? A two-person crew and a forklift will cost \$38 per hour.

• Compare this with the answers in question 4; Wayne should adopt a two-man crew and use a forklift.
• From the printouts, we must determine how much “idle time” there is with the present system. This depends in part upon the crew size. For a crew of four, for example, 24 minutes per hour is spent unloading trucks and the rest is idle time. Therefore, Wayne could get 36 minutes of work per hour of work elsewhere out of each worker. At \$14 per hour, this is worth \$8. 40 (\$14/hr times . 6 hours). In theory, he could save up to \$8. 40 per worker per hour assuming he could assign them to other tasks where the pay rates were the same.

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