IoBM

CBM 4040

Wilson Puckett, president of Wabash Waste Management, had a stack of proposals on his desk from
several truck companies. Two of the companies, Roper and Rollins, offered trucks on a lease basis,
while three dealers wanted Wabash to buy their trucks. In the past, Puckett always purchased the
trucks. Which proposal would be best, he wondered, as he picked up the proposals for the third or
fourth time. Wabash Waste Management is an industrial waste recycling company. It picks up grease
and oil from several manufacturing facilities in a regional area, cleans the grease and oil, and then
sells it to a company that packages the material for resale. Wabash also picks up frying grease from
restaurants for recycling. The company was about to enter a new regional market, and needed four
new trucks to pick up the used oil and grease. The trucks were tank trucks with a pump that pumped
the grease or oil from a holding tank at the restaurant or manufacturing plant. Darnell Gates, fleet
manager, wanted Puckett to choose the Hauler2000, a tank truck with a McLaren pump capable of
pumping 50 gallons in about five minutes. It has a capacity of 5,000 gallons. The truck is rated at 10
miles per gallon of gasoline and has one of the better maintenance records of all of the trucks. The