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A city needs to choose area rubbish disposal areas. Area A: A gravel pit has a capacity of 16 million cubic meter. Owing to the possibility of high groundwater the Regional Water Pollution Control Board has restricted the lower 2 million cubic meters of fill to inert material only (earth, concrete, asphalt, paving, brick, etc.). This must be purchased and hauled to this area for the bottom fill. Area B: Capacity is 14 million cubic meters. For 20% of the city, the haul is the same distance as for Area A. The round-trip haul is 5 miles longer for 60% of the city, and 2 miles shorter for 20% of the city. Assume the following conditions • Cost of inert material placed in Area A will be $9.40/m3 • Average sped of trucks from last pickup to disposal site is 25 miles per hour • The rubbish truck and a two-man crew will cost $210 per hour • Truck capacity of 4 ½ tons per load or 20 m3 • Sufficient cover material is available at all areas Which of the sites do you recommend?

Business Economics, Economics

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