M6_IND1. A receiving operator for a large grocery store is analyzing her operations. Trucks arrive to the loading dock at an average rate of three per hour for each day. The cost of operating a truck is estimated to be $90 per hour. Trucks are met by a three-person crew, the crew can unload the truck in an average of 15 minutes. The payroll associated with each crew member is $28/hour. It is possible to install new equipment to help the crew operate more efficiently, decreasing the unloading time from 15 minutes to 12 minutes per truck. There is an additional cost for this equipment that is estimated to be $250/day. Assume each day is an 8-hour shift. Should the new equipment be installed?
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