Deluxe River Cruises operates a fleet of river vessels. The fleet has two types

Question

Deluxe River Cruises operates a fleet of river vessels. The fleet has two types of vessels: A type-A vessel has 60 deluxe cabins and 160 standard cabins, whereas a type-B vessel has 80 deluxe cabins and 120 standard cabins. Under a charter agreement with Odyssey Travel Agency, Deluxe River Cruises is to provide Odyssey with a minimum of 360 deluxe and 680 standard cabins for their 15-day cruise in May. It costs $43,000 to operate a type-A vessel and $56,000 to operate a type-B vessel for that period. How many of each type of vessel (x type-A and y type-B) should be used in order to keep the operating costs to a minimum?

(x,y)=

What is the minmum cost? $

Explanation / Answer

Different Combinations and their Cost:

So, the minimum Cost Combination is 2 Units of Type A and 3 Units of Type B.

Type A (No.) Cabin Cost Type B(No.) Cabin Cost Total Cost 6 (360+ 960) 264,000 0 0 0 264,000 0 0 0 6 (480+720) 324,000 324,000 1 (60 + 160) 44,000 5 (400+ 600) 270,000 314,000 2 (120+ 320) 88,000 3 (240 + 360) 162,000 250,000

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