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What are the various categories of services? 5- How do services differ from manufacturing? 6- What are some of the categories of new products?

You are in charge of a quarry that supplies sand and stone aggregates to your company’s construction sites. Empty trucks from construction sites arrive at the quarry’s huge piles of sand and stone aggregates and wait in line at the station, which can load either sand or aggregate. At the station they are filled with material, weighed, and checked out, whereupon they leave the quarry and proceed to a construction site. Currently eight empty trucks arrive per hour, on average. Once a truck has entered the loading station, it takes six minutes for it to be filled. weighed, and checked out. Concerned that trucks are spending too much time waiting and being filled, you are evaluating two alternatives to reduce the average time trucks spend in the system. The first alternative is to add sideboards to the trucks (so that more material could be loaded) and to add a helper at the loading station (so that loading times could be reduced). The total cost for this alternative is $500,000. The arrival rate of trucks would change to six trucks per hour, and the filling time would be reduced to 5 minutes, on average. The second alternative is to add another loading station at a cost of $800,000. The trucks would wait in a common line and the truck at the front of the line would move to the next available station. Which alternative would you recommend if you want to reduce the current average waiting time in the system? (Assume that arrivals are Poisson and loading times are exponentially distributed. Note that the second alternative introduces a second channel. You can use Q_Calc to compute the required numbers.)

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