Assignment:
Wingman is considering can be used 8,000 miles a month and will cost $1,500 a local truck rental firm will rent trucks at a cost of $1.50 per mile, which includes the maintenance costs for has come up with three alternatives to consider as shown in the table:
|
Monthly requirements (miles)
|
40,000
|
80,000
|
1,20,000
|
|
Probability
|
0.20
|
0.50
|
0.30
|
|
Fleet size (trucks)
|
5
|
10
|
15
|
1. Which fleet size will yield the lowest experienced monthly costs for wingman?
2. A fleet size of trucks the lowest cost alternative with expected monthly costs to wingman of $.