A firm produces a product at two factories and sells the product at two retail stores. The firm hastwo warehouses to which all products are shipped for distribution to retail stores. Units arealways shipped from the factories to the warehouses and then distributed to the retail stores fromthe warehouses. The firm wants to determine the shipping pattern from factories to warehousesto retail stores that will minimize cost. The various unit shipping-costs are:Source Data.FromTo: W1To: W2F18.F236.Source Data.FromTo: R1To: R2W158.W236.Note:The production capacities at the factories and the demand at the retail stores are:Products can also be shipped from factory 2 (F2) to factory 1 (F1). The cost for that is 3 per unit.FactoriesRetail StoresF1: 100R1: 140F2: 200R2: 160

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Answered: A firm produces a product at two…

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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TJ, Inc. makes three nut mixes for sale to grocery chains located in the Southeast. The three mixes, referred to as the Regular Mix, the Deluxe Mix, and the Holiday Mix, are made by mixing different percentages of five types of nuts. In preparation for the fall season, TJ, Inc. just purchased the following shipments of nuts at the prices shown: Type of Nut Shipment Amount (pounds) Cost per Shipment ($) Almond 6,200 7,500 Brazil 7,600 7,225 Filbert 7,600 6,750 Pecan 6,000 7,300 Walnut 7,600 7,875 The Regular Mix consists of 15% almonds, 25% Brazil nuts, 25% filberts, 10% pecans, and 25% walnuts. The Deluxe Mix consists of 20% of each type of nut, and the Holiday Mix consists of 25% almonds, 15% Brazil nuts, 15% filberts, 25% pecans, and 20% walnuts. An accountant at TJ, Inc. analyzed the cost of packaging materials, sales price per pound, and so forth, and determined that the profit contribution per pound is $1.70 for the Regular Mix, $2.05 for the Deluxe Mix, and $2.30…
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