Grummins Engine produces diesel trucks. New government emission standards have dictated that the average pollution emissions of all trucks produced in the next three years cannot exceed 10 grams per truck. Grummins produces two types of trucks. Each type 1 truck sells for $20,000, costs $15,000 to manufacture, and emits 15 grams of pollution. Each type 2 truck sells for $17,000, costs $14,000 to manufacture, and emits 5 grams of pollution. Production capacity limits total truck production during each year to at most 320 tracks. Grummins knows that the maximum number of each truck type that can be sold during each of the next three years is given in Table 62.
Thus, at most, 300 type 1 trucks can be sold during year 3. Demand may be met from previous production or the current year’s production. It costs $2.000 to hold 1 truck (of any type) in inventory for one year. Formulate an LP to help Grummins maximize its profit during the next three years.
table 62
Maximum Demand for Trucks
Year | Type 1 | Type 2 |
1 | 100 | 200 |
2 | 200 | 100 |
3 | 300 | 150 |
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