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.Shipping Cost ($/units)Factory/CapacityCustomer 1Customer 2Customer 3A/130 units978B/ 120 units10913C/140 units1065 Requirement - 195 unitsRequirement - 65 unitsRequirement - 130 unitsComplete the table below to show the quantity shipped from each factory to each customer. (Leave no cells blank - be certain to enter "0" wherever required.)Shipping Cost ($/units)Factory Customer 1Customer 2Customer 3A B C What is the total cost of meeting customer requirements each day?

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Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

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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.

Shipping Cost ($/units)

Factory/Capacity	Customer 1	Customer 2	Customer 3
A/130 units	9	7	8
B/ 120 units	10	9	13
C/140 units	10	6	5
	Requirement - 195 units	Requirement - 65 units	Requirement - 130 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.)

Shipping Cost ($/units)

Factory	Customer 1	Customer 2	Customer 3
A
B
C

What is the total cost of meeting customer requirements each day?

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### Minimizing Shipping Costs for a Firm

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.

#### Shipping Costs and Requirements

| Factory/Capacity | Customer 1 | Shipping Costs ($/unit) | Customer 2 | Shipping Costs ($/unit) | Customer 3 | Shipping Costs ($/unit) |
|--------------------|------------|-------------------------|------------|-------------------------|------------|-------------------------|
| A/190 units | 10 | 10 | 10 | 8 | | |
| B/180 units | 11 | 11 | 12 | 9 | | |
| C/140 units | 6 | 5 | 6 | 12 | | |

The requirements for each customer are:

- Requirement—Customer 1: 255 units
- Requirement—Customer 2: 85 units
- Requirement—Customer 3: 170 units

#### Shipping Quantities Table (Fill in the Blanks)

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.)*

**Note:** The supplied answer is almost complete but not entirely correct.

| Factory | Shipping Costs ($/unit) | Customer 1 | Customer 2 | Customer 3 |
|---------|--------------------------|------------|------------|------------|
| A | | 95 | 0 | 95 |
| B | | 105 | 0 | 75 |
| C | | 55 | 85 | 0 |

#### Total Shipping Cost Calculation

What is the total cost of meeting customer requirements each day?

- **Correct Answer:** The total cost is $4,295.

### Analysis of Graphs and Tables

The table supplies both requirements and shipping costs for simplifying distribution. The primary diagram (shipping costs) is for understanding unit costs associated with customer shipments from each factory, ensuring efficient logistics planning.

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