Question

Q2 (40 points)

CC	Loads	Prob. of Occurrence
	30	0.4
	70	0.6

Sese Trucking owns two types of trucks: normal cargo (FS) and car carriers (CC). Sese has 100 drivers for FS trucks and 50 drivers for CC. Drivers are not interchangeable (i.e., an FS driver cannot drive a CC and vice versa). Each driver can deliver one load a day. The discrete demand distributions for daily loads are given below:

FS	Loads	Prob. of Occurrence
	120	0.2
	100	0.8

a) What are the expected number of loads handled by Sese for FS and CC respectively?

b) What is the expected utilization for FS and CC drivers respectively?

Sese decides to lease 20 FS trucks and 10 CC trucks (and their drivers) on a daily basis in addition to its own fleet

c) What are the expected loads Sese can handle for FS and CC respectively now?

d) What are the expected lost sales (loads Sese cannot handle) for FS and CC respectively now?

e) What is the expected capacity utilization of the total fleet?

f) Sese always uses its own trucks and drivers first before using the leased fleet. What is the expected number of unused trucks in the leased fleet?

Since the leased fleet did not meet Sese's expectations on quality and handling, Sese decided to stop leasing. Sese decided to invest instead in making its trucks totally flexible and retraining its drivers on both types. (i.e., any truck and driver in Sese's fleet can now handle both FS and CC)

g) What is the expected capacity utilization of Sese's fleet now?

h) What are the expected lost sales (loads Sese cannot handle) of FS and CC now?