Formulation Quiz Transportation The Top Speed Bicycle Co. manufactures and markets a line of 10-speed bicycles nation- wide. The firm has final assembly plants in two cities in which labor costs are low, New Orleans and Omaha. Its three major warehouses are located near the large market areas of New York, Chicago, and Los Angeles. The sales requirements for the next year at the New York warehouse are 10,000 bicycles, at the Chicago warehouse 8,000 bicycles, and at the Los Angeles warehouse 15,000 bicycles. The factory capacity at each location is limited. New Orleans can assemble and ship 20,000 bicycles; the Omaha plant can produce 15,000 bicycles per year. The cost of shipping one bicycle from each factory to each warehouse differs, and these unit shipping costs are as follows: FROM New Orleans Omaha TO NEW YORK CHICAGO LOS ANGELES $2 $3 $5 3 1 4 The company wishes to develop a shipping schedule that will minimize its total annual trans- portation costs.

Formulation Quiz Transportation The Top Speed Bicycle Co. manufactures and markets a line of 10-speed bicycles nation- wide. The firm has final assembly plants in two cities in which labor costs are low, New Orleans and Omaha. Its three major warehouses are located near the large market areas of New York, Chicago, and Los Angeles. The sales requirements for the next year at the New York warehouse are 10,000 bicycles, at the Chicago warehouse 8,000 bicycles, and at the Los Angeles warehouse 15,000 bicycles. The factory capacity at each location is limited. New Orleans can assemble and ship 20,000 bicycles; the Omaha plant can produce 15,000 bicycles per year. The cost of shipping one bicycle from each factory to each warehouse differs, and these unit shipping costs are as follows: FROM New Orleans Omaha TO NEW YORK CHICAGO LOS ANGELES $2 $3 $5 3 1 4 The company wishes to develop a shipping schedule that will minimize its total annual trans- portation costs.

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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