Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 13, Problem 13P
Summary Introduction

Interpretation: The estimated transportation cost should be calculated considering its association with the optimal allocation pattern.

Concept Introduction: Decision making is a process of determining the alternative option to a given situation. It reaches the most suitable option for action. During decision making, the factors and some uncertainties are taken to consider.

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Prescott Industries transports sand and stone extracted fromits open-pit mines located in Odessa and Bryan to its con-crete block manufacturing facilities in Abilene, Tyler, and SanAngelo. For the capacities, locations, and shipment costs pertruckload shown in the Figure 13.13, determine the shippingpattern that will minimize transportation costs. What are theestimated transportation costs associated with this optimalallocation pattern?
The Thor International Company operates four factories that ship products to five warehouses. The shipping costs, requirements, and capacities are shown in Figure. Use the transportation method to find the shipping schedule that minimizes shipping cost.
The Thor International Company operates four factories that ship products to five warehouses. The shipping costs, requirements, and capacities are shown in the tableau below. Use the transportation method to find the shipping schedule that minimizes shipping cost. Shipping Cost per Case to each Warehouse W2 Factory Сарacity W1 W3 W4 W5 Dummy $5 $5 $4 $7 $0 F1 60,000 $4 $5 $4 $6 $8 $0 F2 80,000 $6 $5 $7 $4 $5 $0 F3 80,000 $5 $9 $6 $7 $4 $0 F4 40,000 Demand 45,000 40,000 30,000 35,000 50,000 60,000 260,000 The minimum shipping cost is S | (Enter your response as a whole number.)
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