A car rental company has four locations in the city; Southwest. Northeast, South

Question

A car rental company has four locations in the city; Southwest. Northeast, Southeast, and Northwest. The Northwest location has 20 more cars than it needs, and the North- east location has 15 more cars than it needs. The Southwest location needs 10 more cars than it has, and the Southeast location needs 25 more cars than it has. It costs $10 (in salary and gas) to have an employee drive a car from Northwest to Southwest. It costs $20 to drive a car from Northwest to Southeast. It costs $5 to drive a car front Northeast to Southwest, and it costs $10 to drive a car from Northeast to Southeast. If the company will spend a total of $475 rearranging its cars, how many cars will it drive from each of Northwest and Northeast to each of Southwest and Southeast?

Explanation / Answer

One possible solution to control the expenditure in rearranging the cars within $475 is to supply 15 cars from north east to south east . Here the cost of driving is 10/car. Hence the total expenses incurred in driving 15 cars from north east to south east will be 15*$10=$150. The remaining requirement in south east for 10 cars is met from North west (which has 20 cars in excess) at the cost of 20 per car. Hence the cost will be 10*$20=$200.Therefore the total cost incurred in supplying the demand for south east will be $200+$150=$350

The need of south west region is only 10 cars which can be obtained from the remaining 10 cars in North west. The total cost of transportation is 10*$10=$100

Hence the total cost incurred in meeting the demand is $100+$350=$450 < $475(Amount that company is ready to pay.

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