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...
Related questions
Question
![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3988a69a-9631-488d-b467-7e776f48615f%2F11da750f-be8b-41a9-b420-ccd910d48090%2Fd1dkvl_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.
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