A fruit juice manufacturer has recently begun negotiations with brokers in the areas where it intends to distribute its products. Before finalizing the agreements, however, the manager wants to determine shipping routes and costs. The firm has three plants with the capacities as shown below: Estimate demands in each of the warehouse localities are: PLANT CAPACITY (BOXES PER WEEK) WAREHOUSE DEMAND (BOXES PER WEEK) 1 2 3 25,000 45,000 30,000 A B C D 10,000 20,000 40,000 20.000
A fruit juice manufacturer has recently begun negotiations with brokers in the areas where it intends to distribute its products. Before finalizing the agreements, however, the manager wants to determine shipping routes and costs. The firm has three plants with the capacities as shown below: Estimate demands in each of the warehouse localities are: PLANT CAPACITY (BOXES PER WEEK) WAREHOUSE DEMAND (BOXES PER WEEK) 1 2 3 25,000 45,000 30,000 A B C D 10,000 20,000 40,000 20.000
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:A fruit juice manufacturer has recently begun negotiations with brokers in the areas where it intends to distribute its
products. Before finalizing the agreements, however, the manager wants to determine shipping routes and costs.
The firm has three plants with the capacities as shown below: Estimate demands in each of the warehouse localities are:
PLANT CAPACITY (BOXES PER WEEK)
WAREHOUSE DEMAND (BOXES PER WEEK)
1
2
3
25,000
45,000
30,000
The estimated ship cost per box for the various routes are:
TO
FROM
A
B
C
D
I
1
2
4
5
2
2
3
3
2
3
4
1
2
1
Row/Column Opportunity Cost
Demand
A
B
C
D
Row/Column
Opportunity Cost
10,000
20,000
40,000
20,000
Supply
Cell
Cost of the above
allocation
Test of unallocated Cells Amount
Total Cost
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