Introduction to Operation Engineering Management Decision Analysis You can solve

Introduction to Operation Engineering Management Decision Analysis
You can solve this problem as a team, however, each student should submit his/her solution separately.
Cost of Meetings for Your Organization (Central Limit Theorem):
Suppose you attend one meeting everyday and on average 5 people are in each meeting. Further, the cost to your organization for each person in the meeting is approximately 300 SAR/Hour (Salary + Health Insurance Cost + Retirement + Rent + …..). Assume there are 252 working days in a year.
Following is the time in minutes of the most recent meetings:
45
65
90
74
86
40
120
95
67
82
a) What is the expected annual cost to your organizations of these meetings?
b) Suppose each meeting is expected to last for 60 minutes, but 75% of times it goes over the allotted time by 15 minutes, how much does this time overrun cost your organization?
c) Use Central Limit Theorem to estimate the probability that the annual cost of the meetings for your organization will exceed 500,000 SAR?
d) If the meetings take between 45-120 minutes (uniformly). What is the expected annual cost to your organization?
e) Use simulation using 252 runs to estimate the savings to your organization if you install the rule that at 60 minutes (if the meeting is not finished by then) each person has 2 minutes to express his/her views and the meeting will end in 10 minutes sharp! that is the total time of the meeting is 70 minutes.