Answer the questions based on the following information. Production pattern for number of units (in cubic feet) per day.

The finished goods are to be transported to the market by a truck having a capacity of 2000 cubic feet. Any finished goods (ready at the end of the day) retained overnight at the factory will incur a storage cost of Rs 5 per cubic foot for each night of storage. The hiring cost for the truck is Rs 1000 per day.

Question 44

If the storage cost is reduced to Re 0.80 per cubic feet per day, then on which day(s), should the truck be hired?


If the truck is hired only for the 7th day, the cost will be (150*6 + 180*5 + 120*4 + 250*3 + 160*2 + 120)*0.8 = 2776
So, total cost incurred = 2776 + 1000 = 3776

If a truck is hired on 4th day and 7th day, the cost incurred will be (150*3 + 180*2 + 120)*0.8 + 1000 + (160*2 + 120)*0.8 + 1000 = 3096

So, a truck should be hired on the 4th and 7th day.

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