Compute number of models of each truck must be bought

Assignment Help Other Subject
Reference no: EM13111087

The Two-Rivers Oil Company near Pittsburgh transports gasoline to its distributors by truck. Company currently contracted to supply gasoline distributors in souther Ohio, and it has 600,000 available to spend on essential expansion of its fleet of gasoline tank trucks. Three models of gasoline tank trucks are available. Super Tank, Regular Line, Econo-Tanker. Super Tank capacity gallons are 5,000 buying cost is 67,000 and Monthly operating cost are 550. Regulare capacity gallons are 2,500 buying caost is 55,000 and monthly operating cost is 425. Econo-Tanker capacity gallons are 1000 buying cost is 46,000 and monthly operating cost is 350. Company evaluates that monthly demand for region will be 550,000 gallons of gasoline. As size and speed differences of trucks the number of delieveries or round trips possible per month for each truck model will differ. Trip capacities are evaluated at 15 trips per month for super tanker, 20 trips per month for regular line, and 25 trips for Econo Tanker. Based on maintenance and driver availability firm doesn't want to add more than 15 new vehicles to its flee. In addition, company has made decision to buy at least three of new Econo-Tankers for use on short-run, low-demand routes. As the final constraint, conpany deosn't want more than half new models to be Super Tankers.

A) if company wants to satisfy gasoline demand with minimum monthly operating expense, how many many models of each truck must be bought?

B) if company didn't need at least three Econo-Tankers and did not limit number of Super Tankers to at most half new models, how many models of each truck must be bought?

Reference no: EM13111087

Questions Cloud

Calculate the budgeted operating income : Foster Company makes power tools. The budgeted sales are $420,000, budgeted variable costs are $147,000, and budgeted fixed costs are $227,500.
Determining bonferroni correction : What are planned comparisons? Why do researchers making planned comparisons need to make the Bonferroni correction? If a researcher is making four planned comparisons using the .05 significance level
Determine the new pressure of the gas : Determine the new pressure of the gas and express your answer in Pa
Explain how much cash will be freed up : The industry is now adopting a new inventory system if the new system is able to reduce the organization's inventory level and increase the organization's inventory turnover ratio to 5 while maintaining the same level of sales, explain how much ca..
Compute number of models of each truck must be bought : If company wants to satisfy gasoline demand with minimum monthly operating expense, how many models of each truck must be bought?
How are these values compatible : the oxaloacetate-malate couple is less negative than the NAD_- NADH couple. How are these values compatible with the transfer of electrons from malate to NAD_ in the TCA cycle?
Explain if interest rates were expected to increase : McKinsee Inc. is developing a plan to finance its asset base. The firm has $5,000,000 in current assets of which 20% are permanent and $12,000,000 in fixed assets. Long-term rates are currently 9.5%, while short-term rates are at 7%. McKinsee's ta..
Payment for subscriptions is billed one month in advance : All monthly payments are due by the 15th of each month. Payments received after the 20th of the month will result in a late fee of $20.00. The late fee may be waived one time per year.
Test value-criminal proceedings : Some defendants in criminal proceedings plead guilty and are sentenced without a trial, whereas others who plead innocent are subsequently found guilty and then are sentenced.

Reviews

Write a Review

 

Other Subject Questions & Answers

  Expressing the admissibility of character evidence in trial

Give 3 examples of a situation where character evidence is inadmissible in a criminal trial. The admissibility of character evidence of a victim of rape at the trial of the alleged rapist is a controversial topic.

  Inadmissibility in immigration law

What are the grounds of inadmissibility in Immigration Law?

  National party organizations

What role did the old party machines play and how and why might those roles have been transferred to national party organizations starting in the late 20th Century?

  Why hospitals are categorized as nonprofit-for-profit

Write a 200- to 300-word response to the following: Hospitals are usually categorized as nonprofit, for-profit, or governmental. Recognize at least one example of each from your community or state.

  Issue of global warming and energy

Suppose you're a newspaper columnist asked to address the issue of global warming and energy in next editorial blog of your newspaper's website.

  Juvenile court systems in texas and pennsylvania

The similarities and differences between the juvenile court characteristics in Texas and the characteristics in Pennsylvania.

  Whether the death penalty is cruel

Over 200 word essay with reference in regards to whether or not the death penalty is cruel and unusual punishment.

  Explain why would an organization decide to outsource

Explain. why would an organization decide to outsource globally? Illustrate what benefits also risks should be considered in global sourcing?

  Beneficial effects to system of law

Describe beneficial effects to our system of law gained from the principle of stare decisis.

  Legal principle to handle the court issues

Identify and discuss the legal principle that would be applied by a court to resolve this issue, and predict the outcome of the suit against Tom.

  How important the role of food is in decision making

Connections between food and leisure behaviors. When planning the leisure activity or full-fledged trip, how important the role of food in decision making?

  How to forecast criminal organizations dealing in marijuana

How do you forecast that criminal organizations dealing in marijuana and other drugs would react and or change?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd