Question: A construction firm has collected data on dump trucks as shown in the table below (dollar amounts) Age in Years O to 1 1 to

A construction firm has collected data on dump

A construction firm has collected data on dump trucks as shown in the table below (dollar amounts) Age in Years O to 1 1 to 2 2 to 3 3 to 4 4 to 5 7000 7500 8500 8700 9000 Annual Maintenance Cost 500 800 900 1000 1200 Annual Lost Revenue for Down Time 16000 13000 11000 8000 5000 Year-End Trade-in Value No dump truckis kept more than 5 years. Determine a replacement policy for a dump truck currently 2 years old that will minimize the total operating cost over the next 9 years. Assume the new trucks cost $ 21,000 and only new trucks are made at the end of each year. a) Perform the necessary algorithm to identify the optimal replacement policy. Show all cost per node for all iterations following the indicated fomat below: Year 1 2 3 4 5 6 7 8 9 Cost (It. 1) Cost (It. 2) 3 4 5 6 7 8 9 What is the optimal replacement policy? Identify all possible policies if necessary. Total Operating Cost

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