Assignment:
Wingman Distributing Company is expending is supply chain to include a new distributing into in South Bend. A key decision involves the number of trucks for the facility. The particular model of truck Wingman is considering can be used 8,000 milles a month and will cost $1,500 a month in capital costs. In addition, each mile a truck is used costs $0.90 for mantenance local truck rental firm will rent trucks at a cost of $1.50 per mile, which includes the maintenance costs for those miles. Given the distribution of likely requirements for trucks, management has come up with three alteranatives to consider as shown in the table.
Monthly requirements (miles) 40,000 80,000 120,000
Probability 0.20 0.50 0.30
Fleet size (trucks) 5 10 15
a. Which fleet size will yield the lowest expected monthly costs for wingman?
b. A fleet of trucks is the lowest cost alternative, with expected monthly costs to wingman of $ (Enter your response as integers)