Mackk Engine produces diesel trucks. New government emission standards have dictated that the average pollution emissions of all trucks produced in the next three years cannot exceed 12 grams per truck. Mackk produces two types of trucks. Each type 1 truck sells for $50,000, costs $38,000 to manufacture, and emits 17 grams of pollution. Each type 2 truck sells for $40,000, costs $28,000 to manufacture, and emits 12 grams of pollution. Production capacity limits total truck production during each year to at most 350 trucks. The maximum numbers of each truck type that can be sold during each of the next three years are listed in the file P04_113.xlsx. Demand can be met from previous production or the current year’s production. It costs $1500 to hold one truck (of any type) in inventory for one year. Determine how Mackk can maximize its profit during the next three years.
Mackk Engine produces diesel trucks. New government emission standards have dictated that the average pollution emissions of all trucks produced in the next three years cannot exceed 12 grams per truck. Mackk produces two types of trucks. Each type 1 truck sells for $50,000, costs $38,000 to manufacture, and emits 17 grams of pollution. Each type 2 truck sells for $40,000, costs $28,000 to manufacture, and emits 12 grams of pollution. Production capacity limits total truck production during each year to at most 350 trucks. The maximum numbers of each truck type that can be sold during each of the next three years are listed in the file P04_113.xlsx. Demand can be met from previous production or the current year’s production. It costs $1500 to hold one truck (of any type) in inventory for one year. Determine how Mackk can maximize its profit during the next three years.
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