Smart Corporation produces and sells laptops. It has four factories and four shops located in different cities. The management of Smart Corporation has just bought a new machine that can improve its productivity. After using the new machine, Smart Corporation's production has increased by 500 units. Therefore, the management has decided to open a new shop and two cities are under their consideration. The two cities under consideration are City E and City F. The shipping cost per unit (RM), factory supplies, and shop demands are as follows Factory Shop Supply A I || ||| B 30 40 35 50 40 30 Demand 600 700 IV C 30 35 E F 45 55 50 45 50 35 60 45 40 55 700 55 45 50 D 40 30 45 400 600 500 500 700 800 600 1. Determine the best choice of city to open the new shop. Why? 2. Due to the shipping limitation, no unit shall be shipped from I to City B. What would happen to the answer in (a)?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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Smart Corporation produces and sells laptops. It has four factories and four shops located in different cities. The
management of Smart Corporation has just bought a new machine that can improve its productivity. After using the new
machine, Smart Corporation's production has increased by 500 units. Therefore, the management has decided to open a
new shop and two cities are under their consideration. The two cities under consideration are City E and City F. The
shipping cost per unit (RM), factory supplies, and shop demands are as follows
Factory Shop Supply
A
I
||
IV
Demand
B
30
40
35
40
с
30
35
50
30
600 700
D
E F
45 55 50 45
40 50 35 60
30 45 40
45 55 45 50
55
400 600 500 500
700
800
700
600
1. Determ the best choice of city to open the new shop. Why?
2. Due to the shipping limitation, no unit shall be shipped from I to City B. What would happen to the answer in (a)?
Transcribed Image Text:Smart Corporation produces and sells laptops. It has four factories and four shops located in different cities. The management of Smart Corporation has just bought a new machine that can improve its productivity. After using the new machine, Smart Corporation's production has increased by 500 units. Therefore, the management has decided to open a new shop and two cities are under their consideration. The two cities under consideration are City E and City F. The shipping cost per unit (RM), factory supplies, and shop demands are as follows Factory Shop Supply A I || IV Demand B 30 40 35 40 с 30 35 50 30 600 700 D E F 45 55 50 45 40 50 35 60 30 45 40 45 55 45 50 55 400 600 500 500 700 800 700 600 1. Determ the best choice of city to open the new shop. Why? 2. Due to the shipping limitation, no unit shall be shipped from I to City B. What would happen to the answer in (a)?
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