Mylab Operations Management With Pearson Etext -- Access Card -- For Operations Management: Sustainability And Supply Chain Management (13th Edition)
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Chapter C, Problem 10P
Summary Introduction

To determine: The optimal solution and the total cost using transportation problem.

Introduction: The major objective of the transportation problem is to minimize the distributing cost of a product from a source to an origin. Transportation problem is one of the type of linear programming.

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QUESTION 21. Mr. Jack is in the process of expanding his manufacturing business. He decided to opena plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table.Locations                 A         B            C          DFixed Costs         60,000 80,000 100,000 130,000Variable Costs/unit  30        20          15        10a.i. Write an equation to represent the total costs for each location. ii. Draw the total costs lines for each location on the same axes. (Use output rangesof 200, 400, 600, 800 etc. and intervals of $50,000 on the Y axis.iii. Over what range of output is location A the most preferred location?iv. Over what range of output is location B the most preferred location?v. Over what range of output is location C the most preferred location?
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