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

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter12: Queueing Models
Section12.5: Analytic Steady-state Queueing Models
Problem 9P
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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
Transcribed Image Text: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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