A company wants to minimize the cost of shipping a product from 3 different factories to 6 different customers. Each factory has a capacity of upto 50000 units each. Customers 1 to 6 need to be supplied 30000 units, 23000 units, 15000 units, 32000 units, 28000 units, and 16000 units, respectively. How should the company distribute the products? The shipping costs are given in the table below. Minimize the costs of shipping goods from factories to customers, while meeting the demand of each customer.Cost of shipping ($ per product) Destinations Customer 1Customer 2Customer 3Customer 4Customer 5Customer 6Factory 1$1.75$2.25$1.50$2.00$1.65$1.50Factory 2$1.90$2.35$2.00$1.75$1.80$1.25Factory 3$2.00$2.50$2.50$1.50$1.95$1.00Refer to the Factory-to-Six-Customers problem and start with the original information. Each customer increases demand by 1000 units. This increased demand has to be met. Re-calculate the optimal solution. At the new solution, which of the following statements is true? A.The total shipping costs are $252,900 B.Quantity shipped from Factory 1 to Customer 1 declines by 6000 units C.Both A and B D.Neither A nor B

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Answered: A company wants to minimize the cost of…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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A company wants to minimize the cost of shipping a product from 3 different factories to 6 different customers. Each factory has a capacity of upto 50000 units each. Customers 1 to 6 need to be supplied 30000 units, 23000 units, 15000 units, 32000 units, 28000 units, and 16000 units, respectively. How should the company distribute the products? The shipping costs are given in the table below. Minimize the costs of shipping goods from factories to customers, while meeting the demand of each customer.
Cost of shipping ($ per product)
	Destinations
	Customer 1	Customer 2	Customer 3	Customer 4	Customer 5	Customer 6
Factory 1	$1.75	$2.25	$1.50	$2.00	$1.65	$1.50
Factory 2	$1.90	$2.35	$2.00	$1.75	$1.80	$1.25
Factory 3	$2.00	$2.50	$2.50	$1.50	$1.95	$1.00

Refer to the Factory-to-Six-Customers problem and start with the original information. Each customer increases demand by 1000 units. This increased demand has to be met. Re-calculate the optimal solution. At the new solution, which of the following statements is true?