Suppose the company has received a proposal for setting up another warehouse (Warehouse E) with a capacity of 900 units. The location of the warehouse is such that the unit costs of transporting to the six cities are as follows: Hyderabad–45, Mysore– 75, Chennai–30, Kochi–65, Pune–90 and Vizag–80. The company would like to know how the allocation will change if the warehouse is made operational and the likely cost impact on the operation of the system.
Suppose the company has received a proposal for setting up another warehouse (Warehouse E) with a capacity of 900 units. The location of the warehouse is such that the unit costs of transporting to the six cities are as follows: Hyderabad–45, Mysore– 75, Chennai–30, Kochi–65, Pune–90 and Vizag–80. The company would like to know how the allocation will change if the warehouse is made operational and the likely cost impact on the operation of the system.
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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Question
Suppose the company has received a proposal for setting up another warehouse
(Warehouse E) with a capacity of 900 units. The location of the warehouse is such that
the unit costs of transporting to the six cities are as follows: Hyderabad–45, Mysore–
75, Chennai–30, Kochi–65, Pune–90 and Vizag–80. The company would like to know
how the allocation will change if the warehouse is made operational and the likely cost
impact on the operation of the system.
Transcribed Image Text:Hyderakad Mysore
Madras
Kocni
Pune
Vizag S
Suply
60
70
10
30
90
90
1900
Warehouse A
70
25
40
55
80
Warehouse B
100
1800
50
80
45
75
85
Warehouse C
30
3300
80
Warchouse D
40
50
45
90
60
1300
Dermand
1750
750
2000
1800
1200
800
8300
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