Question: Problem 3 . A truck maintenance shop is considering two locations. In location 1 they expect a demand of 1 5 trucks per day and

Problem 3. A truck maintenance shop is considering two locations. In location 1 they expect a demand of
15 trucks per day and in location 2 they expect a demand of 20 trucks per day. The service time per truck is
1 hour and they operate 8 hours per day. Each location can have at most 5 repair bays. Location 1 has a
monthly lease cost of $20K while for location 2 is $28K. The monthly costs associated with each bay is $9K
(labor and equipment maintenance/ rent). The revenue per truck is $350. Assume 250 days per year.
Complete all calculations on an annual basis. Waiting costs are $180/hour.
- Determine the profit per location/configuration and make a recommendation.
- Develop a sensitivity plot based on the waiting cost (x variable), ranging from $100/hour to
$250/hour. Explain the graph results. Note the best number of repair bays per location may change
as z changes.
I will apreaciate a step by step answer.

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