A shovel needs to be selected from four models of different capacities, S1 to S4, for loading of dumpers. The operational data for the shovel-dumper combination are provided. The mean arrival rate of the dumpers at the loading point is 5 per hour and the waiting cost of dumper is ₹200 per hour. The inter-arrival time of dumpers and loading time of shovel follows exponential distribution. Ignoring the shovel hiring cost, the shovel type that will have minimum total cost (waiting and operating cost) is
| Model | Operating cost of shovel (₹ per hour) | Mean loading rate of shovel (number of dumpers per hour) |
|---|---|---|
| S1 | 800 | 8 |
| S2 | 850 | 9 |
| S3 | 920 | 10 |
| S4 | 1000 | 11 |
This is a queueing cost problem. Dumpers turn up at random and wait their turn to be loaded by one shovel, so each shovel choice behaves as its own single server queue, an M/M/1 system. Instead of jumping straight to the crowd size formula, it helps to build up through the utilisation and the time a dumper spends in the system.
Let's summarize:
So the shovel to pick is S2.