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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: A B C D 10,000 20,000 40,000 20.000 TO FROM A B C D I 2 4 5 2 2 3 3 2 3 4 1 2 Demand 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: A B C D 10,000 20,000 40,000 20.000 TO FROM A B C D I 2 4 5 2 2 3 3 2 3 4 1 2 Demand Supply

Practical Management Science
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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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: TO FROM I A B C D I 2 4 5 2 2 3 3 2 3 4 1 2 Row/Column Opportunity Cost Demand Row/Column B C D Opportunity Cost 10,000 20,000 40,000 20.000 Supply 3. Cell Cost of the above Test of unallocated Cells Amount allocation Total Cost
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) 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: TO FROM I A B C D I 2 4 5 2 2 3 3 2 3 4 1 2 Row/Column Opportunity Cost Demand Row/Column B C D Opportunity Cost 10,000 20,000 40,000 20.000 Supply 3. Cell Cost of the above Test of unallocated Cells Amount allocation Total Cost
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