Haul should lease to minimize total initial capital outlay

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Reference no: EM132097947

The We-Haul Company is about to lease 5000 new trucks for its California operations. The specifications of each truck under considering are as follows: Truck Country Capacity Capital Outlay Monthly Lease Ford US 1 ton $2000 $500 Chevrolet US 1 ton $1000 $600 Dodge US ¾ ton $5000 300 Mack US 5 tons $9000 $900 Nissan Japan ½ ton $2000 $200 Toyota Japan ¾ ton $0 $400 We-Haul has decided that, for public relations reasons, given the current Buy American atmosphere, it will lease at least 60% or 3000 of the trucks from American manufacturers. Each truck requires an initial capital outlay as well as monthly lease payments. We-Haul feels that it can support a total monthly lease payment of at most $2,750,000. Its fleet requirements mandate at least a 10,000-ton total payload capacity for the 5000 trucks leased. a. construct, in equation form, the linear programming model that determines the number of each truck We-Haul should lease to minimize its total initial capital outlay. b. solve this problem using solver.

Reference no: EM132097947

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