Markus, Inc., has harvested 400 tons of lumber from a pine forest located outside of Manchester, 200 tons from a forest near Seattle, and 150 tons from a forest outside of Portland. Japan has placed an order for 300 tons at a price of $1200 per ton, Taiwan needs 300 tons and will pay $1000 per ton, and Singapore wants 250 tons at $1000 per ton. It costs Markus, Inc. $500 to get each ton from the pine forest to the port in Manchester, $400 per ton to the port in Seattle, and $300 per ton to Portland. Assume that each pine forest only supplies its closest port. The following table provides the cost for shipping each ton by sea from these ports to the respective countries: ________________________________________________________________________ SHIPPING COST ($/TON) OF LUMBER BY SEA TO: FROM JAPAN TAIWAN SINGAPORE Manchester 250 250 200 Seattle 250 200 200 Portland 200 150 150 a. What's the supply constraint associated with the forests near Seattle? b. What's the demand constraint associated with Singapore?
Markus, Inc., has harvested 400 tons of lumber from a pine forest located outside of Manchester, 200 tons from a forest near Seattle, and 150 tons from a forest outside of Portland. Japan has placed an order for 300 tons at a price of $1200 per ton, Taiwan needs 300 tons and will pay $1000 per ton, and Singapore wants 250 tons at $1000 per ton. It costs Markus, Inc. $500 to get each ton from the pine forest to the port in Manchester, $400 per ton to the port in Seattle, and $300 per ton to Portland. Assume that each pine forest only supplies its closest port. The following table provides the cost for shipping each ton by sea from these ports to the respective countries:
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SHIPPING COST ($/TON) OF LUMBER BY SEA TO:
FROM JAPAN TAIWAN SINGAPORE
Manchester 250 250 200
Seattle 250 200 200
Portland 200 150 150
a. What's the supply constraint associated with the forests near Seattle?
b. What's the demand constraint associated with Singapore?
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