Merton Trucks

We discuss Merton Trucks [Dhe90a] as a case to introduce linear

programming in theMBA program. This case adapted from Sherman

Motor Company case, was used to introduce Linear Programming

formulations as well as duality. Refer to the teaching note [Dhe90b].

Our approach differs from the approach suggested by

Dhebar [Dhe90b]. First, our audience consists pre-dominantly of engineers

with not too much work experience. As a result, handling

math and algebra is relatively easy. Explaining the algebraic formulation,

graphical approach and using the Excel solver do not consume

that much time. Second, because this case is used during the first

week of the MBA program, students are still unfamiliar with the case

methodology and we spend significant time in understanding case

facts. The circular logic used in allocating fixed costs based on the

product mix that in turn is used in deciding the product mix takes

some time to understand. Third, because of the participant background,

they have difficulty in translating the model to the specific

business situation and interpreting the trade-offs involved in various

what-if analyses that are prompted by the case questions.

We return to the case when we teach duality. After explaining

duality, we analyze the case to show how some of the questions and

what-if analyses can be simplified using duality.

This note is based on our experiences with teaching three large

batches of students in our MBA programs.

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