Transportation costs per ton of product vary with distance. For trucks the function is: TCt = 3 + 1.25d For rail it is: TCr = 5 + d For barge it is: TCb = 6 + 1.1d where d is the distance in hundreds of miles and TC is dollars per ton. Make a table showing the least cost mode of transport for distances d = 1, 2, ...,10. Graph the problem and label the modal break points clearly.
Transportation costs per ton of product vary with distance. For trucks the function is: TCt = 3 + 1.25d For rail it is: TCr = 5 + d For barge it is: TCb = 6 + 1.1d where d is the distance in hundreds of miles and TC is dollars per ton. Make a table showing the least cost mode of transport for distances d = 1, 2, ...,10. Graph the problem and label the modal break points clearly.
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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- Transportation costs per ton of product vary with distance.
For trucks the function is: TCt = 3 + 1.25d
For rail it is: TCr = 5 + d
For barge it is: TCb = 6 + 1.1d
where d is the distance in hundreds of miles and TC is dollars per ton. Make a table showing the least cost mode of transport for distances d = 1, 2, ...,10. Graph the problem and label the modal break points clearly.
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