A delivery firm has two types of van a and b and carries


Question: A delivery firm has two types of van, A and B, and carries three types of load, X, Y and Z. Each van is capable of carrying a mixed load, but only in certain proportions, given the special size and weight of the different loads. When fully loaded,

type A can carry 20 of X, 15 of Y and 15 of Z

type B can carry 10 of X, 60 of Y and 15 of Z

A typical daily delivery schedule requires the firm to carry 200 loads of X, 450 loads of Y and 225 loads of Z. Each van is only loaded for deliveries once a day. The smaller van, A, costs £50 a day to run and the larger van, B, costs £100 a day. How many of each type of van should the firm use to minimize total running costs (TRC)? Will there be space in the vans for any more of any of the loads X, Y or Z should more orders be placed?

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Microeconomics: A delivery firm has two types of van a and b and carries
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