Brown Oil Company transports gasoline to its distributors by truck. The company recently contracted to supply gasoline distributors in southern Ohio,

and it has $1,600,000 available to spend on the necessary expansion of its fleet of gasoline tank trucks (e.g. capital expenditures). Three models of gasoline tank trucks are available:

The company estimates that the monthly demand for the region will be 550,000 gallons of gasoline. Because of the size and speed differences of the trucks, the monthly capacity of the trucks will vary.

Truck Model	Monthly Truck Capacity (Gallons)	Purchase Cost	Monthly Operating Cost, including Depreciation
Sub 100	75000	$200,000	$1,550
Oiler J	62500	$160,000	$1,425
Texan	30000	$100,000	$1,350

The company wants to meet customer demand and minimize monthly operating costs.

a. How many of each type of truck will the company buy? What is the total capital expenditure? What is the expected monthly operating cost?

b. In the answer tab, type out the objective function and constraints for part a.

c. Management has asked that two additional considerations be made. The company must purchase at least 3 Texans, and no more than half of the new models may be Sub 100.

What is the optimal solution (number of each truck) and the objective function value with these additional considerations?