Consider the following distribution system: • Single product. • Two plants, referred to as plant p1 and plant p2. • Plant p2 has an annual capacity of 40,000 units. • The two plants have the same production costs. • Two existing warehouses, referred to as warehouse w1 and warehouse w2, have identical warehouse handling costs. • Three markets areas, c1, c2, and c3, with demands of 50,000, 100,000 and 50,000, respectively, Table 1 provides distribution cost per unit. For instance, distributing one unit from plant p1 to warehouse w2 costs $5. Convert the following diagram into the table. No need for any calculation.

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
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Consider the following distribution system:
Single product.
Two plants, referred to as plant p1 and plant p2.
Plant p2 has an annual capacity of 40,000 units.
The two plants have the same production costs.
•
•
Two existing warehouses, referred to as warehouse w1 and warehouse w2, have identical
warehouse handling costs.
•
Three markets areas, c1, c2, and c3, with demands of 50,000, 100,000 and 50, 000, respectively,
Table 1 provides distribution cost per unit. For instance, distributing one unit from plant p1 to
warehouse w2 costs $5.
Convert the following diagram into the table. No need for any calculation.
Facility
warehouse
w1
W2
p1
2
3
p2
2
0
c1
3
5
c2
3
2
C3
4
3
Transcribed Image Text:Consider the following distribution system: Single product. Two plants, referred to as plant p1 and plant p2. Plant p2 has an annual capacity of 40,000 units. The two plants have the same production costs. • • Two existing warehouses, referred to as warehouse w1 and warehouse w2, have identical warehouse handling costs. • Three markets areas, c1, c2, and c3, with demands of 50,000, 100,000 and 50, 000, respectively, Table 1 provides distribution cost per unit. For instance, distributing one unit from plant p1 to warehouse w2 costs $5. Convert the following diagram into the table. No need for any calculation. Facility warehouse w1 W2 p1 2 3 p2 2 0 c1 3 5 c2 3 2 C3 4 3
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