Long description

 

Number of teams of stevedores working

 

1

2

3

4

(a) Average number of ships arriving per shift

5

5

5

5

(b) Average time each ship waits to be unloaded (hours)

7

4

3

2

(c) Total ship hours lost per shift (a) times (b)

35

20

15

10

(d) Estimated cost per hour of idle ship time

$1,000

$1,000

$1,000

$1,000

(e) Value of ship’s lost time or waiting cost © times (d)

$35,000

$20,000

$15,000

$10,000

(f) Stevedore team salary, or service cost

$6,000

$12,000

$18,000

$24,000

(g) Total expected cost, sum of (e) and (f)

$41,000

$32,000

$33,000

$34,000

A note against the stevedores team salary reads "Stevedore team salaries are computed as the number of people in a typical team (assumed to be 50) times the number of hours ...

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