Wingman Distributing Company is expanding its supply chain to include a new distribution hub in South Bend. A key decision involves the number of trucks for the facility. The particular model of truck Wingman is considering can be used 4,000 miles a month and will cost $800 a month in capital costs. In addition, each mile a truck is used costs $0.90 for maintenance. A local truck rental firm will rent trucks at a cost of $1.70 per mile, which includes the maintenance costs for those miles Given the distribution of likely requirements for trucks, management has come up with three alternatives to consider as shown in the table. Monthly requirements (miles) 20,000 60,000 80,000 0.30 0.20 0.50 Probability Fleet size (trucks) 15 20 Which fleet size will yield the lowest expected monthly costs for Wingman? A fleet size of trucks is the lowest cost alternative, with expected monthly costs to Wingman of S (Enter your responses as integers.)

Wingman Distributing Company is expanding its supply chain to include a new distribution hub in South Bend. A key decision involves the number of trucks for the facility. The particular model of truck Wingman is considering can be used 4,000 miles a month and will cost $800 a month in capital costs. In addition, each mile a truck is used costs $0.90 for maintenance. A local truck rental firm will rent trucks at a cost of $1.70 per mile, which includes the maintenance costs for those miles Given the distribution of likely requirements for trucks, management has come up with three alternatives to consider as shown in the table. Monthly requirements (miles) 20,000 60,000 80,000 0.30 0.20 0.50 Probability Fleet size (trucks) 15 20 Which fleet size will yield the lowest expected monthly costs for Wingman? A fleet size of trucks is the lowest cost alternative, with expected monthly costs to Wingman of S (Enter your responses as integers.)

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter11: Simulation Models

Section: Chapter Questions

Problem 47P

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