The Gorilla Oil Company near Pittsburg transports gasoline to its distributors by truck. The companyrecently contracted to supply gasoline distributors in Kansa, and it has $1,000,000 available to spend on thenecessary expansion of its fleet of gasoline tank trucks. Three models of gasoline tank trucks are available.II.Truck ModelCapacity (gallons)Purchase Cost Monthly Operating CostSuper TankerRegular LineEcono-Tanker5,0003,0002,000$50,000$40,000$25,000$1,000$ 800$ 600The company estimates that the monthly demand for the region will be 500,000 gallons of gasoline.Because of the size and speed differences of the trucks, the number of deliveries or round trips possible permonth for each truck model will vary. Trip capacities are estimated at 10 trips per month for the SuperTanker, 20 trips per month for the Regular Line, and 30 trips per month for the Econo-Tanker. Based onmaintenance and driver availability, the firm does not want to add more than 30 new vehicles to its fleet. Inaddition, the company has decided to purchase at least 10 of the new Econo-Tankers for use on short-run,low-demand routes. If the company wishes to satisfy the gasoline demand with a minimum monthlyoperating expense, how many models of each truck should be purchased. Formulate this problem as a LPmodel. Don't ever try to solve it.

Linear programming is a mathematical technique that is also used in operations management…

Answered: The company estimates that the monthly…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows: MONTH DEMAND (UNITS) January February 4,100 4,200 March 3,900 April 4,300 May 4,900 June 4,600 July 5,200 August 4,800 September 5,300 October 5,600 November 6,200 December 5,900
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