Wingman Distributing Company is expanding its supply chain to include a new distribution hub 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 5,000 miles a month and will cost $900 a month in capital costs. In addition, each mile a truck is used costs $0.90 for maintenance. A local truck rental firm will rent trucks at a cost of $1.80 per mile. Given the distribution of likely requirements for trucks, management has come up with three alternatives to consider as shown in the table: Monthly requirements (miles) 50,000 100,000 150,000 Probability 0.20 0.50 0.30 Fleet size (trucks) 10 20 30 Which fleet size will yield the lowest expected monthly costs for Wingman?

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now