RVW (Restored Volkswagens) buys 30 used VW's at each of two car auctions each week held at different locations.  It then transports the cars to repair shops it contracts with. When they are restored to RVW's specifications, RVW sells 20 each to three different used car lots. There are various costs associated with the average purchase and transportation prices from each auction to each repair shop. Also there are transportation costs from the repair shops to the used car lots. RVW is concerned with minimizing its total cost given the costs in the table below. Repair Shops                         Used Car Lots         S1     S2                              L1    L2    L3 500    400                S1      350    400    600 550    350                S2      450    750    550

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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RVW (Restored Volkswagens) buys 30 used VW's at each of two car auctions each week held at different locations.  It then transports the cars to repair shops it contracts with. When they are restored to RVW's specifications, RVW sells 20 each to three different used car lots. There are various costs associated with the average purchase and transportation prices from each auction to each repair shop. Also there are transportation costs from the repair shops to the used car lots. RVW is concerned with minimizing its total cost given the costs in the table below.

Repair Shops                         Used Car Lots        
S1     S2                              L1    L2    L3
500    400                S1      350    400    600
550    350                S2      450    750    550

 

 

 

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