Consider the Figure. There are two sources of supply: A and B. The market boundary occurs at Y where the LDC from A is the same as B. In the example shown in Figure the distance between A and B is 100 miles. If we let the distance from A to Y be X miles, then the distance from B to Y is (100-X) miles. Assume supply A is the factory and supply B is a distribution center. Assume the product cost at A is $100 and product cost from B is $100 plus TL transportation from A to B and inventory costs at B. For this example, assume the TL transportation and inventory carrying costs are $10 per unit so the product cost from B is $110. Transportation costs from either A or B are $0.40 per unit per mile. Determine the Market Boundary? 100 Miles (100 – X) Miles X Miles A Y
Consider the Figure. There are two sources of supply: A and B. The market boundary occurs at Y where the LDC from A is the same as B. In the example shown in Figure the distance between A and B is 100 miles. If we let the distance from A to Y be X miles, then the distance from B to Y is (100-X) miles. Assume supply A is the factory and supply B is a distribution center. Assume the product cost at A is $100 and product cost from B is $100 plus TL transportation from A to B and inventory costs at B. For this example, assume the TL transportation and inventory carrying costs are $10 per unit so the product cost from B is $110. Transportation costs from either A or B are $0.40 per unit per mile. Determine the Market Boundary? 100 Miles (100 – X) Miles X Miles A Y
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...
Related questions
Question
100%
From the figure, find the market boundary.
![Consider the Figure. There are two sources of supply: A and B. The market
boundary occurs at Y where the LDC from A is the same as B. In the example shown
in Figure the distance between A and B is 100 miles. If we let the distance from A to
Y be X miles, then the distance from B to Y is (100-X) miles. Assume supply A is the
factory and supply B is a distribution center. Assume the product cost at A is $100
and product cost from B is $100 plus TL transportation from A to B and inventory
costs at B. For this example, assume the TL transportation and inventory carrying
costs are $10 per unit so the product cost from B is $110. Transportation costs from
either A or B are $0.40 per unit per mile. Determine the Market Boundary?
100
Miles
(100 – X)
Miles
Miles
A
Y](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F482d5eb5-a775-4125-ab5b-6bc9158a0027%2Fa55f8c00-6bee-4c76-a054-b0ddf630d016%2Fnk786u_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider the Figure. There are two sources of supply: A and B. The market
boundary occurs at Y where the LDC from A is the same as B. In the example shown
in Figure the distance between A and B is 100 miles. If we let the distance from A to
Y be X miles, then the distance from B to Y is (100-X) miles. Assume supply A is the
factory and supply B is a distribution center. Assume the product cost at A is $100
and product cost from B is $100 plus TL transportation from A to B and inventory
costs at B. For this example, assume the TL transportation and inventory carrying
costs are $10 per unit so the product cost from B is $110. Transportation costs from
either A or B are $0.40 per unit per mile. Determine the Market Boundary?
100
Miles
(100 – X)
Miles
Miles
A
Y
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Practical Management Science](https://www.bartleby.com/isbn_cover_images/9781337406659/9781337406659_smallCoverImage.gif)
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
![Operations Management](https://www.bartleby.com/isbn_cover_images/9781259667473/9781259667473_smallCoverImage.gif)
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
![Operations and Supply Chain Management (Mcgraw-hi…](https://www.bartleby.com/isbn_cover_images/9781259666100/9781259666100_smallCoverImage.gif)
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
![Practical Management Science](https://www.bartleby.com/isbn_cover_images/9781337406659/9781337406659_smallCoverImage.gif)
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
![Operations Management](https://www.bartleby.com/isbn_cover_images/9781259667473/9781259667473_smallCoverImage.gif)
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
![Operations and Supply Chain Management (Mcgraw-hi…](https://www.bartleby.com/isbn_cover_images/9781259666100/9781259666100_smallCoverImage.gif)
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
![Business in Action](https://www.bartleby.com/isbn_cover_images/9780135198100/9780135198100_smallCoverImage.gif)
![Purchasing and Supply Chain Management](https://www.bartleby.com/isbn_cover_images/9781285869681/9781285869681_smallCoverImage.gif)
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
![Production and Operations Analysis, Seventh Editi…](https://www.bartleby.com/isbn_cover_images/9781478623069/9781478623069_smallCoverImage.gif)
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.