From plants Existing plants Atlanta Tulsa Proposed locations New Orleans Houston Forecast demand To Distribution Centers Los Angeles $8 $4 $5 $4 800 New York $5 $7 $6 $6 1200 Production capacity 600 900 500 500 2000 Unit production cost $6 $5 $4 (anticipated) $3 (anticipated) Williams Auto Top Carriers has decided to open a third plant in one of the two cities - New Orleans and Houston. Based on the information below, which of the new location in combination with the existing plants and distribution centers, yields a lower cost for the firm? Find the total transportation cost, and the optimal product quantities for each routes.
From plants Existing plants Atlanta Tulsa Proposed locations New Orleans Houston Forecast demand To Distribution Centers Los Angeles $8 $4 $5 $4 800 New York $5 $7 $6 $6 1200 Production capacity 600 900 500 500 2000 Unit production cost $6 $5 $4 (anticipated) $3 (anticipated) Williams Auto Top Carriers has decided to open a third plant in one of the two cities - New Orleans and Houston. Based on the information below, which of the new location in combination with the existing plants and distribution centers, yields a lower cost for the firm? Find the total transportation cost, and the optimal product quantities for each routes.
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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