Ch4 - Problem 18a (page 179) minimize problem The Two-Rivers Oil Company near Pittsburgh transports gasoline to its distributors by truck. The company recently contracted to supply gasoline distributors in southern Ohio, and it has $600,000 available to spend o the necessary expansion of its fleet of gasoline tank trucks. Three models of gasoline tank trucks are availabl Truck Model Purchase Cost Monthly Operating cost, Including Depreciation Capacity (gallons) 5000 2500 1000 Super Tanker Regular Line Econo-Tanker $550 $67,000 $55,000 $46,000 $425 $350 The company estimates that the monthly demand for the region will be 550,000 gallons of gasoline. Because the size and speed differences of the trucks, the number of deliveries or round trips possible per month for ea truck model will vary. Trip capacities are estimated at 15 trips per month for the Super Tanker, 20 trips per month for the Regular Line, and 25 trips per month for the Econo-Tanker. Based on maintenance and driver availability, the firm does not want to add more than 15 new vehicles to its fleet. In addition, the company ha decided to purchase at least three of the new Econo-Tankers for use on short-run, low-demand routes. As a fi constraint, the company does not want more than half the new models to be Super Tankers. Set up the Solver and LINGO, find the optimal solution and write the sensitivity report as thoroughly as possible. 1. If the company wishes to satisfy the gasoline demand with a minimum monthly operating expense, he many models of each truck should be purchased? (Please provide both SOLVER and LINGO output) Hints: There are three decision variables. There are five constraints: (1) Budget; (2) Capacity (gallons)*trips for monthly demand; (3) max. tota vehicles; (4) min. Econo-tankers; (5) no more than 50% of Super Tankers. 2. Please write a report to describe the sensitivity report regarding optimal solution, objective function values, slack/surplus variables, bindingonbinding, shadow price, range of feasibility, and range of optimality. Ch4 - Problem 18a (page 179) minimize problem The Two-Rivers Oil Company near Pittsburgh transports gasoline to its distributors by truck. The company recently contracted to supply gasoline distributors in southern Ohio, and it has $600,000 available to spend on the necessary expansion of its fleet of gasoline tank trucks. Three models of gasoline tank trucks are available. Truck Model Purchase Cost Super Tanker Regular Line Econo-Tanker Capacity (gallons) 5000 2500 1000 $67,000 $55,000 $46,000 Monthly Operating Cost, Including Depreciation $550 $425 $350 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 number of deliveries or round trips possible per month for each truck model will vary. Trip capacities are estimated at 15 trips per month for the Super Tanker, 20 trips per month for the Regular Line, and 25 trips per month for the Econo-Tanker. Based on maintenance and driver availability, the firm does not want to add more than 15 new vehicles to its fleet. In addition, the company has decided to purchase at least three of the new Econo-Tankers for use on short-run, low-demand routes. As a final constraint, the company does not want more than half the new models to be Super Tankers. Set up the Solver and LINGO, find the optimal solution and write the sensitivity report as thoroughly as possible. 1. If the company wishes to satisfy the gasoline demand with a minimum monthly operating expense, how many models of each truck should be purchased? (Please provide both SOLVER and LINGO output) Hints: There are three decision variables. There are five constraints: (1) Budget; (2) Capacity (gallons) trips for monthly demand: (3) max, total vehicles; (4) min. Econo-tankers; (5) no more than 50% of Super Tankers 2. Please write a report to describe the sensitivity report regarding optimal solution, objective function values, slack/surplus variables, bindingonbinding, shadow price, range of feasibility, and range of optimality