Reference no: EM133082732

1. Transportation costs per ton of product vary with distance. ?For trucks the function is: ??

For rail it is: ????

For barge it is: ???

where d is the distance in hundreds of miles and TC is dollars per ton. Make a table showing the least cost mode of transport for distances d = 1, 2, ...,10. Graph the problem and label the modal break points clearly. No graph paper, max 50% points on assignment.

2. Farmers growing peas ship them to the processing plant of their cooperative. The price paid for peas by the coop is $25 per ton minus the cost of haulage. The coop charges hauling fees of:

where d is the distance from the farm to the plant in miles and TC is the cost of haulage per ton. Make a table showing the net price the farmers receive for d = 1, 2, ...,10 miles distance from the plant.

3. These same farmers buy fertilizer from the coop at $11/ton. The fertilizer store is the same location as the processing plant for the peas. They pay for haulage from that location at a cost of:

where d is the distance in miles from the fertilizer store to the farm and TC is the cost per ton. The net cost of fertilizer is $10 plus hauling expenses. Make a table showing the net price that farmers pay for d = 1, 2, ...,10 miles distance from the plant.

4. Suppose that it takes 1 ton of fertilizer to produce 3 tons of peas. Prepare a table to show the net revenue that a farmer would receive from selling 3 tons of peas to the coop and buying 1 ton of fertilizer from the coop for locations at a distance of d = 1, 2, ..., 10 miles.