A firm is attempting to minimize its shipping costs. The firm has 3 factories and must supply the needs of its 3 customers without shortages. Since the firm has no storage facilities, each factory must make daily shipments to its customers. The table below shows the capacity of each factory, the amount required by each customer, and the cost of shipping from each factory to each customer. Factory/Capacity A/130 units B/110 units C/100 units Factory A B C Customer 1 10 8 5 Requirement-170 units Total cost Shipping Costs ($/unit) Customer 2 Shipping Costs ($/unit) Customer 1 Customer 2 Customer 3 14 7 9 Requirement-57 units Complete the table below to show the quantity shipped from each factory to each customer. (Leave no cells blank - be certain to enter "0" wherever required.) What is the total cost of meeting customer requirements each day? Customer 3 14 12 7 Requirement-113 units.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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The problem involves a firm seeking to minimize its shipping costs. The firm operates three factories that need to supply three customers without shortages. Each factory makes daily shipments to its customers since there are no storage facilities. The table provides information about each factory's capacity, customer requirements, and the cost of shipping from each factory to each customer.

**Factory Capacities and Shipping Costs (per unit):**

- **Factory/Capacity**
  - **Customer 1 Shipping Costs ($/unit):** 
    - A: 10
    - B: 8
    - C: 5
  - **Customer 2 Shipping Costs ($/unit):** 
    - A: 14
    - B: 7
    - C: 9
  - **Customer 3 Shipping Costs ($/unit):** 
    - A: 14
    - B: 12
    - C: 7

- **Factory Capacities:**
  - A: 130 units
  - B: 110 units
  - C: 100 units

- **Customer Requirements:**
  - Customer 1: 170 units
  - Customer 2: 57 units
  - Customer 3: 113 units

The task is to complete the provided table with the quantities shipped from each factory to each customer. It's emphasized that no cells should be left blank; "0" should be entered where applicable.

**Table for Shipping Quantities:**

- **Shipping Costs ($/unit):**

| Factory | Customer 1 | Customer 2 | Customer 3 |
|---------|------------|------------|------------|
| A       |            |            |            |
| B       |            |            |            |
| C       |            |            |            |

- **Objective:** Calculate and fill in the quantity of units shipped from each factory to each customer.

**Question:**
Determine the total cost of meeting customer requirements each day.

- **Total Cost:**
  - Enter the calculated total cost in the provided cell.
Transcribed Image Text:The problem involves a firm seeking to minimize its shipping costs. The firm operates three factories that need to supply three customers without shortages. Each factory makes daily shipments to its customers since there are no storage facilities. The table provides information about each factory's capacity, customer requirements, and the cost of shipping from each factory to each customer. **Factory Capacities and Shipping Costs (per unit):** - **Factory/Capacity** - **Customer 1 Shipping Costs ($/unit):** - A: 10 - B: 8 - C: 5 - **Customer 2 Shipping Costs ($/unit):** - A: 14 - B: 7 - C: 9 - **Customer 3 Shipping Costs ($/unit):** - A: 14 - B: 12 - C: 7 - **Factory Capacities:** - A: 130 units - B: 110 units - C: 100 units - **Customer Requirements:** - Customer 1: 170 units - Customer 2: 57 units - Customer 3: 113 units The task is to complete the provided table with the quantities shipped from each factory to each customer. It's emphasized that no cells should be left blank; "0" should be entered where applicable. **Table for Shipping Quantities:** - **Shipping Costs ($/unit):** | Factory | Customer 1 | Customer 2 | Customer 3 | |---------|------------|------------|------------| | A | | | | | B | | | | | C | | | | - **Objective:** Calculate and fill in the quantity of units shipped from each factory to each customer. **Question:** Determine the total cost of meeting customer requirements each day. - **Total Cost:** - Enter the calculated total cost in the provided cell.
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