We will start by assigning variables for the number of small vans and number of large vans which are what we are trying to determine.
Let x = Number of small vans and y = Number of large vans.
Now let's look at the constraints.
- Purchase cost <= 100000 which means
10000 x + 20000 y <= 100000 which may be simplified as
x + 2y <= 10
- Maintenance cost <= 500 meaning
100x + 75 y <= 500 which may be simplified as
4x + 3y <= 20
We can add two other inequalities as x>= 0 and y >= 0 as the number of vans cannot be negative.
The objective function would be to maximize the number of passengers.
which would be 7x + 15 y
If we draw the 4 inequalities, The vertices of the bounded region would be (0,0), (5,0) , (0,5) and the intersection of the lines x + 2y = 10 and 4x + 3y = 20 which is (2,4)
The value of Objective function at these vertices will be 0, 35, 75 and 74 respectively for (0,0), (5,0), (0,5) and (2,4)
The point (0,5) is giving us the maximum passengers of 75. Hence, they should purchase 5 large vans and no small vans.
Note: I tried to record a video answer, but I was facing technical difficulties.