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3: Transportation VAM | Problem A 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) DEMAND (BOXES PER WEEK) WAREHOUSE 1 2 3 25,000 45,000 30,000 The estimated ship cost per box for the various routes are: ABCD 10,000 20,000 40,000 20,000

3: Transportation VAM | Problem A 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) DEMAND (BOXES PER WEEK) WAREHOUSE 1 2 3 25,000 45,000 30,000 The estimated ship cost per box for the various routes are: ABCD 10,000 20,000 40,000 20,000

Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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3: Transportation VAM | Problem A 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) 1 2 3 25,000 45,000 30,000 WAREHOUSE A B C D DEMAND (BOXES PER WEEK) 10,000 20,000 40,000 20,000 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 Row/Column Opportunity Cost Supply Cell Cost of the above Test of unallocated Cells Amount allocation Total Cost
Transcribed Image Text:3: Transportation VAM | Problem A 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) 1 2 3 25,000 45,000 30,000 WAREHOUSE A B C D DEMAND (BOXES PER WEEK) 10,000 20,000 40,000 20,000 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 Row/Column Opportunity Cost Supply Cell Cost of the above Test of unallocated Cells Amount allocation Total Cost
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