A catering company must have the following number of clean napkins available at the beginning of each of the next four days:  day 1: 15, day 2: 12, day 3: 18, and day 4: 6.  After being used, a napkin can be cleaned by one of two methods: fast service or slow service. Fast service costs $0.10 per napkin, and a napkin cleaned via fast service is available for use the day after it is last used.  Slow service costs $0.06 per napkin, and a napkin cleaned via slow service is available two days after they were last used.  New napkins can be purchased for a cost of $0.20 per napkin.   Part A:  Formulate the problem as a minimum cost transportation problem. Part B:  Use Excel Solver to solve the problem (provide exact values for all variables and the optimal objective function).

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
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A catering company must have the following number of clean napkins available at the beginning of each of the next four days:  day 1: 15, day 2: 12, day 3: 18, and day 4: 6.  After being used, a napkin can be cleaned by one of two methods: fast service or slow service. Fast service costs $0.10 per napkin, and a napkin cleaned via fast service is available for use the day after it is last used.  Slow service costs $0.06 per napkin, and a napkin cleaned via slow service is available two days after they were last used.  New napkins can be purchased for a cost of $0.20 per napkin.

 

Part A:  Formulate the problem as a minimum cost transportation problem.

Part B:  Use Excel Solver to solve the problem (provide exact values for all variables and the optimal objective function).

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