Production and Transportation

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(CAT 1998)

Production pattern for number of units (in cubic feet) per day.
Day                          1        2       3       4       5        6         7
Number of units   150   180    120    250   160    120     150

For a truck that can carry 2,000 cubic ft, hiring cost per day is Rs. 1,000. Storing cost per cubic feet is Rs. 5 per day.

1. If all the units should be sent to the market, then on which days should the trucks be hired to minimize the cost?
a. 2nd, 4th, 6th, 7th
b. 7th
c. 2nd, 4th, 5th, 7th
d. None of these

2. 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?
a. 4th
b. 7th
c. 4th and 7th
d. None of these

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