region supplied from 3 supply sources. Trucks ha plus $(95.5)per delivery. The cost of holding one ers will set upmilk runs from suppliers to retail sto dering whether to run a milk run to 2 stores or 3st d in selection of the two options given

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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A retail chain has 6stores in a region supplied from 3 supply sources. Trucks have a capacity of 25000
units and cost $(1027) per load plus $(95.5)per delivery. The cost of holding one unit in inventory at retail
for a year is $1.5. The managers will set upmilk runs from suppliers to retail stores. Assume that all trucks
travel full. Suppliers are considering whether to run a milk run to 2 stores or 3stores on each truck.
Determine a demand threshold in selection of the two options given
Transcribed Image Text:A retail chain has 6stores in a region supplied from 3 supply sources. Trucks have a capacity of 25000 units and cost $(1027) per load plus $(95.5)per delivery. The cost of holding one unit in inventory at retail for a year is $1.5. The managers will set upmilk runs from suppliers to retail stores. Assume that all trucks travel full. Suppliers are considering whether to run a milk run to 2 stores or 3stores on each truck. Determine a demand threshold in selection of the two options given
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