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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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:Hyderabad
Mysore
Madras
Кochi
Pune
Vizag
Supply
60
70
10
30
90
90
Warehouse A
1900
70
40
55
80
100
Warehouse B
1800
50
80
45
75
85
30
Warehouse C
3300
80
40
50
45
90
60
Warehouse D
1300
Demand
1750
750
2000
1800
1200
800
8300
25
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