A fruit juice manufacturer has recently begun negotiations with brokers in the areas where it intends to distribute its products. Before finalizing the agreements, however, the manager wants to determine shipping routes and costs. The firm has three plants with the capacities as shown below: Estimate demands in each of the warehouse localities are: PLANT CAPACITY (BOXES PER WEEK) WAREHOUSE DEMAND (BOXES PER WEEK) 1 2 3 25,000 45,000 30,000 The estimated ship cost per box for the various routes are: ΤΟ FROM A B с D I 1 2 4 5 2 2 3 3 2 3 4 2 1 A B C D 10.000 20,000 40.000 20.000 Supply
A fruit juice manufacturer has recently begun negotiations with brokers in the areas where it intends to distribute its products. Before finalizing the agreements, however, the manager wants to determine shipping routes and costs. The firm has three plants with the capacities as shown below: Estimate demands in each of the warehouse localities are: PLANT CAPACITY (BOXES PER WEEK) WAREHOUSE DEMAND (BOXES PER WEEK) 1 2 3 25,000 45,000 30,000 The estimated ship cost per box for the various routes are: ΤΟ FROM A B с D I 1 2 4 5 2 2 3 3 2 3 4 2 1 A B C D 10.000 20,000 40.000 20.000 Supply
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section: Chapter Questions
Problem 46P
Related questions
Question
![A fruit juice manufacturer has recently begun negotiations with brokers in the areas where it intends to distribute its
products. Before finalizing the agreements, however, the manager wants to determine shipping routes and costs.
The firm has three plants with the capacities as shown below: Estimate demands in each of the warehouse localities are:
PLANT CAPACITY (BOXES PER WEEK)
DEMAND (BOXES PER WEEK)
WAREHOUSE
A
1
2
3
25,000
45,000
30.000
The estimated ship cost per box for the various routes are:
TO
FROM
A
B
C
D
I
I
2
4
5
2
2
3
3
2
3
4
2
1
Row/Column Opportunity Cost
Demand
B
C
D
Row/Column
Opportunity Cost
Cell
Total Cost
10.000
20,000
40.000
20.000
Supply
Cost of the above Test of unallocated Cells
allocation
3.
Amount](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1bde5dc2-f8f0-400c-983f-dff6b5e9d746%2F955f3241-517b-4874-be8c-641396a2f25d%2Fkgj35d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A fruit juice manufacturer has recently begun negotiations with brokers in the areas where it intends to distribute its
products. Before finalizing the agreements, however, the manager wants to determine shipping routes and costs.
The firm has three plants with the capacities as shown below: Estimate demands in each of the warehouse localities are:
PLANT CAPACITY (BOXES PER WEEK)
DEMAND (BOXES PER WEEK)
WAREHOUSE
A
1
2
3
25,000
45,000
30.000
The estimated ship cost per box for the various routes are:
TO
FROM
A
B
C
D
I
I
2
4
5
2
2
3
3
2
3
4
2
1
Row/Column Opportunity Cost
Demand
B
C
D
Row/Column
Opportunity Cost
Cell
Total Cost
10.000
20,000
40.000
20.000
Supply
Cost of the above Test of unallocated Cells
allocation
3.
Amount
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