A manufacturer of certain household goods caters primarily to the south Indian market. At present, the manufacturer has located six stock points in the major south Indian cities of Hyderabad, Mysore, Chennai, Kochi, Pune, and Vizag to cater to the demand. Thereare four warehouses from which the components are distributed. In order to save on the cost of operations, the warehouses are typically located away from these cities in different locations. Identify the least cost schedule for deciding which warehouse will send the items to the cities. 3.b. Suppose the company has received a proposal for setting up another warehouse (Warehouse E) with a capacity of 900 units. The location of the warehouse is such that the unit costs of transporting to the six cities are as follows: Hyderabad–45, Mysore– 75, Chennai–30, Kochi–65, Pune–90 and Vizag–80. The company would like to know how the allocation will change if the warehouse is made operational and the likely cost impact on the operation of the system.
A manufacturer of certain household goods caters primarily to the south Indian market.
At present, the manufacturer has located six stock points in the major south Indian cities
of Hyderabad, Mysore, Chennai, Kochi, Pune, and Vizag to cater to the demand. Thereare four warehouses from which the components are distributed. In order to save on the
cost of operations, the warehouses are typically located away from these cities in different
locations. Identify the least cost
items to the cities.
3.b. Suppose the company has received a proposal for setting up another warehouse
(Warehouse E) with a capacity of 900 units. The location of the warehouse is such that
the unit costs of transporting to the six cities are as follows: Hyderabad–45, Mysore–
75, Chennai–30, Kochi–65, Pune–90 and Vizag–80. The company would like to know
how the allocation will change if the warehouse is made operational and the likely cost
impact on the operation of the system.
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