Reference no: EM132870131

Problem - Smith Concrete Company owns enough ready-mix trucks to deliver up to 100,000 cubic yards of concrete per year (considering each truck's capacity, weather, and distance to each job). Total truck depreciation is $200,000 per year. Raw materials (cement, gravel, and so on) cost about $25 per cubic yard of cement.

Required -

Briefly describe actions that Smith management could take to reduce the truck depreciation cost from year to year.

Briefly describe actions that Smith management could take to reduce the total raw materials cost from year to year.