Production and Operations Analysis, Seventh Edition
Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 11, Problem 47AP
Summary Introduction

Interpretation: Theassignment of the warehouses to sites is to be determined in order to minimize the total annual transportation costs.

Concept Introduction:The highway project work according to the principle that allowed the benefits which can justify the expenditure incurred on the improvement. There are several methodsfor the calculation of the total annual cost of highway transportation. One of the common methods is the Annual Cost Method. The formula used in this method is:

  Cr = P [{I (1+ I) ^n}/ {(1+ I) ^n  1}] = P (CRF)

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