ALBERTA HIGHWAY DEPARTMENT, REGION VI
One student developed the following drawing to guide her analysis:
Question 1: Should one portion of sand silos at the Lake Louise maintenance station be relocated to a point to the west, at a higher elevation? If yes, where should it be relocated, how much capacity should it have, and what are the projected annual savings in truck operating costs? Show your work.
Question 2: Assume that it is discovered that it would be impossible to split the silo into sections. However, it would be feasible to move the entire silo to a site farther up the slope. The section of highway from the Lake Louise maintenance station stretching west 1 mile to where it reaches the 3,000-foot elevation point must be sanded for 30 days per year. All points east of the Lake Louise maintenance station can be serviced from other points. Should the entire silo be moved to another point? If so, to where? What will the savings be? Show your work.
Question 3: Ignore all statements made in question 2 and assume, instead, that the silo can be divided into three sections: one remaining at Lake Louise and other two located somewhere along the 6-mile stretch. If two sections are to be located within the 6-mile section, where should they be placed? What will the savings be over the present system? Show your work.
Question 4: This case was written some time ago, when fuel costs were very low. Assume now that the spreader dump truck costs $.35 per ton-mile to operate (compared to $.10) and that the trailer dump truck used to move sand from the quarry costs $.20 per ton-mile to operate (up from $.03). Answer question 1 again, but this time take into account the new truck operating
Question 5: Answer question 2 again but using the new trucking costs outlined in question 4.
Question 6: Answer question 3 again, taking into account the new trucking costs outlined in question 4.