Winnie Cheng
ESE 204
Truck Leasing Strategy
Reep Construction recently won a contract for the excavation and site preparation of a new rest area on the Pennsylvania Turnpike. The main problem is that the firm wants to minimize cost of meeting the monthly trucking requirements for this project but also follows a no-layoff policy.
The constraints of the problem are as follows:
The job requires four months to complete, with 10, 12, 14 and 8 trucks needed in months 1 through 4, respectively.
The firm signed a long-term lease with PennState Leasing last year for trucks where one of these trucks will be available for use on the new project in month 1, two for month 2, three for month 3 and one for month 4. The long-term leasing
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This plan would lead to a minimal cost of $151,660.
The costs are split up amongst the type of trucks in this way: Type of Truck | Cost | Long-term trucks (7) | 2000*7 = 14000 | S13 (3) | 11675*3 = 35025 | S14 (6) | 14160*6 = 84960 | S23 (1) | 11675 | S31 (1) | 6000 | Total Cost | 151660 |
The reduced cost for S11, S41, S12, S22, and S32 is above zero because in the solution these values are zero, so increasing the “final value” of these trucks or leasing one of any of these trucks would lead to an increase in cost of 3515, 3515, 3725, 210 and 915, respectively. This also means that the cost would have to decrease by those respective numbers in order for the optimal solution to include those variables.
The shadow prices for each of the constraints show how much the objective function would get better or worse by if the right hand side was increased by one unit. For instance if the total number of trucks needed for month 1 increased from 10 to 11, the cost would get better by $2485 or decrease by $2485 (since the shadow price is the negative of the dual price). The positive dual values for the long-term trucks show that using the long-term trucks instead of the short-term trucks actually
The budget analysis shows that the labor hours of the firm are higher than the budgeted amount. As such, the firm needs to evaluate the cost benefit analysis of making or buying their products. To make this decision, various factors need to be considered. Before making the decision, Peyton needs to evaluate the marginal costs and revenue of making versus buying the products. The firm should take the option which provides the highest marginal profit which is the
(3 marks) c) Determine the optimal number of bus and train travelers. (2 marks) d) Say a train strike significantly reduced the number of trains available. By how much would the train capacity constraint have to fall for the optimal solution to be altered? (2 marks)
Springfield Express has an opportunity to obtain a new route that would be traveled 20 times per month. The company believes it can sell seats at $ 175 on the route, but the load factor would be only 60 percent. Fixed cost would increase by $ 250,000 per month for additional personnel, additional passenger train cars, maintenance, and so on. Variable cost per passenger would remain at $ 70.
Do you dig sitting way up high above most other vehicles on the road? Love to go off-roading in an awesome high performance truck with a lift kit? You need a quality source for previously owned lifted trucks and Ole Ben Franklin Motors fits the bill as your respected Used Lifted Truck Dealer in Seymour. Our lifted trucks from trusted manufacturers like Jeep and Chevrolet are ready to take on whatever stretch of ground you prefer whether it be paved roads, rugged terrain, highways, dusty dirt trails and muddy rutty regions removed from civilization. Our used lifted trucks are a blast to drive and ready for all the adventure waiting down the road.
Peter’s Peripherals assembles multimedia upgrade kits --- sets of components for adding sound and video to desktop computers. The demand for their kits for the next four quarters is estimated in the table below. Unit manufacturing cost for each kit is $160. Holding costs on each kit is $80 per quarter. Any kit that must be delivered late is assessed a backorder cost of $120. Each worker is capable of finishing 10 kits per quarter. If the company chooses to vary work force levels, it will incur costs of $400 for each additional worker; $600 for each termination. The company currently has 28 employees.
15) In an unbalanced transportation problem where total supply exceeds total demand, the supply constraints will typically have "≥" inequalities.
Following this review, it is my recommendation that we enter into a contract for the purchase of the equipment in question before the end of the year for the following reasons. Currently, our tax rate is not particularly favorable. We have experienced some small reductions in the late 1970’s, however the introduction of Supply-Side economics
Freight cost will reduce by Truck load and by using maximize the cube and also less than truck load shipment will reduce.
Our issue is that we need a new vehicle because ours was wrecked and the rental car we were given to use after the wreck by the insurance company is about to expire, leaving us no mode of transportation. We are looking into buying a used vehicle from an advertisement in the local paper. We weren’t sure if the vehicle was still available so we have called the owner and inquired. We do not know who we are buying the car from but we are interested in purchasing the Volkswagen Jetta because of the advertisement in our local newspaper. Just from reading the car ad; we deem that the car fits all our needs and we need to get in touch with the owner fast in order to make sure they don’t sell it to someone else.
Even though That the lifted trucks will be less likely to see small vehicles and therefore become more likely to rear end them. , they should not be restricted because it is basically telling a person that you can't drive a big truck because we the government can't because lifted trucks will also have to be more wealthy people because a higher lift would be more expensive causing that person to more likely have insurance and lifted trucks will be more likely to be alert because they are driving a bigger truck. The height of a person is not restricted, So why should the height of a person’s truck be restricted? Cops have pulled over trucks that are majorly big or huge and the cops treat them differently then they would treat a regular car that got pulled over.
Therefore in this agreement the equipment is going to be partially financed by the lessor (Northwest) through a third-party financial institution (Lender) and act as a leveraged lease, wherein the lending company holds the title to the leased asset, while the lessor creates the agreement with the lessee (BNRR) and collects the payment for the use of the equipment. Therefore the lease in this case will be regarded as a financial decision for BNRR
x ≤ 1900 and y ≤ 1400 (Constraints for monthly production of Model S and Model LX)
2) Assume that the shadow price of a non-binding "≤" constraint is 5. This implies that:
Jack Taylor began his business of Enterprise Rent-A-Car in 1962 in St. Louis, Missouri. Following the successfully philosophy of, "Take care of your customers and employees first, and profits will follow", Enterprise grew steadily to become the nation’s largest rent-a-car company. What separated Enterprise from its other competitors such as Hertz, Avis, and Alamo was the fact that the company focused on two segments of the home-city market rather than appealing to the airport-rental market.
Truck driving is a job that people have a passion for. People don't just wake up thinking I wanna get a job truck driving. It's a passion and commitment because the process is not easy. Especially when you have to go state to state some people can't handle the days away from there family and 2nd they can't handle the on the road life period. There are great outcomes though especially when you a have years behind this career.