General Appliance Corporation (GAC) produces refrigerators at three plants: Akron, Evansville, and Chicago. They ship them to distribution centers in Cincinnati, Indianapolis, and Pittsburgh. The accounting, production, and marketing departments have provided the information in the table given below, which shows the unit cost of shipping between any plant and distribution center, plant capacities over the next planning period, and distribution center demands. GAC’s supply chain manager faces the problem of determining how much to ship between each plant and distribution center to minimize the total transportation cost, not exceed available capacity, and meet customer demand. Cincinnati Indianapolis Pittsburgh Capacity Ackron $2.30 $2.50 $2.15 1200 Evansville $2.35 $1.65 $2.95 800 Chicago $1.70 $1.95 $2.99 500 Demand 500 1000 1000
General Appliance Corporation (GAC) produces refrigerators at three plants: Akron, Evansville, and Chicago. They ship them to distribution centers in Cincinnati, Indianapolis, and Pittsburgh. The accounting, production, and marketing departments have provided the information in the table given below, which shows the unit cost of shipping between any plant and distribution center, plant capacities over the next planning period, and distribution center demands. GAC’s supply chain manager faces the problem of determining how much to ship between each plant and distribution center to minimize the total transportation cost, not exceed available capacity, and meet customer demand. Cincinnati Indianapolis Pittsburgh Capacity Ackron $2.30 $2.50 $2.15 1200 Evansville $2.35 $1.65 $2.95 800 Chicago $1.70 $1.95 $2.99 500 Demand 500 1000 1000
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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General Appliance Corporation (GAC) produces refrigerators at three plants: Akron, Evansville, and Chicago. They ship them to distribution centers in Cincinnati, Indianapolis, and Pittsburgh. The accounting, production, and marketing departments have provided the information in the table given below, which shows the unit cost of shipping between any plant and distribution center, plant capacities over the next planning period, and distribution center demands. GAC’s
| Cincinnati | Indianapolis | Pittsburgh | Capacity | |
| Ackron | $2.30 | $2.50 | $2.15 | 1200 |
| Evansville | $2.35 | $1.65 | $2.95 | 800 |
| Chicago | $1.70 | $1.95 | $2.99 | 500 |
| Demand | 500 | 1000 | 1000 |
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