Course Title : Operations Research

Divine and Sampson Car Renting Service is developing a replacement policy for its car fleet for a 5-year planning horizon. At the start of each year, a decision is made as to whether a car should be kept in operation or replaced. A car must be kept in service at least 2 years, with a maximum service life of 4 years. The following table provides the replacement cost as a function of the year a car is acquired and the number of years in operation. Table 1: Divine and Sampson Car Renting data Replacement cost (GH) for given years in operation Year acquired 2 3 4 1 3800 4100 6800 2. 4000 4800 7000 7200 3 4200 5300 I 4 4800 5700 5 5300 (a) Represent this problem as a network. (8 marks) (b) Find the shortest path from the start node to the end node. (8 marks) (c) i. Interpret your answer in (b) above. (2 marks) ii. What is the total cost corresponding to this solution (2 marks) Divine and Sampson Car Renting Service is developing a replacement policy for its car fleet for a 5-year planning horizon. At the start of each year, a decision is made as to whether a car should be kept in operation or replaced. A car must be kept in service at least 2 years, with a maximum service life of 4 years. The following table provides the replacement cost as a function of the year a car is acquired and the number of years in operation. Table 1: Divine and Sampson Car Renting data Replacement cost (GH) for given years in operation Year acquired 2 3 4 1 3800 4100 6800 2. 4000 4800 7000 7200 3 4200 5300 I 4 4800 5700 5 5300 (a) Represent this problem as a network. (8 marks) (b) Find the shortest path from the start node to the end node. (8 marks) (c) i. Interpret your answer in (b) above. (2 marks) ii. What is the total cost corresponding to this solution (2 marks)