Shipping Cost per Case to Warehouse Factory Сарacity W1 W2 W3 W4 W5 $6 80,000 $1 $3 $4 $5 F1 60,000 20,000 $2 $2 $1 $4 $5 F2 60,000 50,000 10,000 $1 $5 $1 $3 $1 F3 60,000 20,000 40,000 $5 $2 $4 $5 $4 F4 50,000 50,000 Demand 60,000 70,000 50,000 30,000 40,000 250,000

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
icon
Related questions
Question

The Acme Company operates four factories that ship products to five warehouses. The shipping costs, requirements capacities, and optimal allocations are shown in Figure. What is the total cost of the optimal solution?

Shipping Cost per Case to Warehouse
Factory
Сарacity
W1
W2
W3
W4
W5
$6
80,000
$1
$3
$4
$5
F1
60,000 20,000
$2
$2
$1
$4
$5
F2
60,000
50,000
10,000
$1
$5
$1
$3
$1
F3
60,000
20,000 40,000
$5
$2
$4
$5
$4
F4
50,000
50,000
Demand
60,000
70,000
50,000
30,000
40,000
250,000
Transcribed Image Text:Shipping Cost per Case to Warehouse Factory Сарacity W1 W2 W3 W4 W5 $6 80,000 $1 $3 $4 $5 F1 60,000 20,000 $2 $2 $1 $4 $5 F2 60,000 50,000 10,000 $1 $5 $1 $3 $1 F3 60,000 20,000 40,000 $5 $2 $4 $5 $4 F4 50,000 50,000 Demand 60,000 70,000 50,000 30,000 40,000 250,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Production Plant
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Marketing
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing