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Your company is to decide on the number of trucks to be put on an annual ( 4 - quarter ) lease for next year.
Your company is to decide on the number of trucks to be put on an annual quarter lease for next year. If the company signs an annual lease, the annual leasing cost is $ per truck. If the company does not have enough trucks in a given quarter, it can also sign quarterly leases at a rate of $ per truck
per quarter. The trucks leased annually require an average of $ maintenance cost per truck per quarter only on quarters that the trucks are used Assume all other operational costs are the same for both annual and quarterly leases. The number of trucks needed in each of the next quarters are as follows:
Q: trucks
Q: trucks
Q: trucks
Q: trucks
How many trucks should be leased annually?
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