During the next two months, General Cars must meet (on time) the following demands for trucks and cars: month 1—400 trucks, 800 cars; month 2—300 trucks, 300 cars. During each month, at most 1,000 vehicles can be produced. Each truck uses 2 tons of steel, and each car uses 1 ton of steel. During month 1, steel costs $400 per ton; during month 2, steel costs $600 per ton. At most, 1,500 tons of steel may be purchased each month (steel may only be used during the month in which it is purchased). At the beginning of month 1, 100 trucks and 200 cars are in inventory. Λt the end of each month, a holding cost of $150 per vehicle is assessed. Each car gets 20 mpg, and each truck gets 10 mpg. During each month, the vehicles produced by the company must average at least 16 mpg. Formulate an LP to meet the demand and mileage requirements at minimum cost (include steel costs and holding costs).
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