Math Problem Statement

Federal Rent-a-Car is putting together a new fleet. It is considering package offers from three car manufacturers. Fred Motors is offering 5 small cars, 5 medium cars, and 10 large cars for $500,000. Admiral Motors is offering 5 small, 10 medium, and 5 large cars for $400,000. Chrysalis is offering 10 small, 5 medium, and 5 large cars for $300,000. Federal would like to buy at least 650 small cars, at least 500 medium cars, and at least 650 large cars. How many packages should it buy from each car maker to keep the total cost as small as possible?

Solution

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Math Problem Analysis

Mathematical Concepts

Linear Programming
Optimization
Cost Minimization

Formulas

Objective function: Minimize 500,000x + 400,000y + 300,000z
Constraints: 5x + 5y + 10z >= 650 (small cars), 5x + 10y + 5z >= 500 (medium cars), 10x + 5y + 5z >= 650 (large cars)

Theorems

Linear Programming (LP) Optimization

Suitable Grade Level

Undergraduate Level (Operations Research or Business Mathematics)