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 (PIECES PER WEEK) WAREHOUSE DEMAND (PIECES PER WEEK) 1 2 3 400 800 600 The estimated ship cost per box for the various routes are: A B C D 900 200 400 300
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 (PIECES PER WEEK) WAREHOUSE DEMAND (PIECES PER WEEK) 1 2 3 400 800 600 The estimated ship cost per box for the various routes are: A B C D 900 200 400 300
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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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:
CAPACITY (PIECES PER WEEK)
WAREHOUSE
PLANT
1
2
3
400
800
600
The estimated ship cost per box for the various routes are:
TO
FROM
A
B
C
D
1
5
7
9
12
2
10
7
2
3
3
8
9
6
4
Row/Column Opportunity Cost
Demand
A
B
C
D
DEMAND (PIECES PER WEEK)
900
200
400
300
Row/Column
Opportunity Cost
Cell
Total Cost
Cost of the above Test of unallocated Cells
allocation
Supply
Amount
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