PROBLEM 3: Rich Oil Company supplies gasoline to its distributors by truck. The company has recently received a contract to begin supplying 800,000 gallons of gasoline per month to distributors in Cincinnati. The company has $500,000 available to create a fleet consisting of three different types of trucks. The relevant capacity, purchase cost, operating costs, and maximum number of trips for each truck type is given in the following table: Purchase Operating cost ($/month) Maximum trips/month 800 20 650 25 500 30 Truck Capacity type 1 (gal.) cost ($) 6000 50.000 2 3000 40,000 3 2000 25,000 That is, a type 1 truck has a capacity to transport 6000*20 =120000 gal. per month. Based on maintenance and driver availability, the firm does not want to buy more than 10 vehicles for its fleet. Also, the company would like to make sure that at least three of the type-3 trucks are purchased (they are needed for use on short- run/low-demand routes). Finally, the company does not want more than half of the fleet to be type-1 trucks. In Homework #1, you developed following model to determine the composition of the fleet that minimizes the monthly operating costs while meeting the demands, staying within the budget, and satisfying the other company requirements. Let T1 = Number of Truck Type 1 Purchased T2 = Number of Truck Type 2 Purchased T3 = Number of Truck Type 3 Purchased Minimize 800T1 + 650T2 + 500T3 Subiect to: (Budget) (Size) (Capacity) (TvDe 3) (Type 1)