An Oil Delivery Truck Contains Five Compartments, Holding Up to 2800

question 2

Essay

An oil delivery truck contains five compartments, holding up to 2800, 2900, 1200, 1800, and 3200 gallons of fuel, respectively. The company must deliver three types of fuel (super, regular, and unleaded) to a customer. The demands, penalty per gallon short, and the maximum allowed shortage are shown in the table below. Each compartment of the truck can carry only one type of gasoline. Determine how to load the truck in a way that minimizes shortage costs.

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Definitions:

Maturity Value

The amount payable to an investor at the end of a debt instrument's holding period.

Maturity Value

The total amount payable to an investment's holder at the investment's maturity date, including the principal and any interest earned.

Maker

In financial terms, the maker is typically the person who creates or signs a promissory note, thereby agreeing to pay the note’s value at maturity.

Notes Receivable

Represents claims against others, recorded by promissory notes, for money to be paid to the company.