Answered: Destination Source Сарacity Abilene…

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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Question

Prescott Industries transports sand and stone extracted from
its open-pit mines located in Odessa and Bryan to its con-
crete block manufacturing facilities in Abilene, Tyler, and San
Angelo. For the capacities, locations, and shipment costs per
truckload shown in the Figure 13.13, determine the shipping
pattern that will minimize transportation costs. What are the
estimated transportation costs associated with this optimal
allocation pattern?

Destination
Source
Сарacity
Abilene
Tyler
San Angelo
$60
$50
$40
Odessa
12,000
$70
$30
$90
Вryan
10,000
Demand
8,000
10,000
4,000
22,000
A FIGURE 13.13
Transportation Tableau for Prescott Industries

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