TelecomOne has manufacturing plants located in Baltimore, Memphis, and Wichita and serves markets in Atlanta, Boston, and Chicago. HighOptic serves markets in Denver, Omaha, and Portland from plants located in Cheyenne and Salt Lake City. Supply city Baltimore Cheyenne Salt Lake City Memphis Wichita Monthly demand (K units) Demand city Production & Transportation Cost (SK/ K units) Atlanta Boston Chicago Denver Omaha Portland 1,675 400 685 1,630 1,160 2,800 18 1,460 1,940 970 100 495 1,200 1,925 2,400 1,425 500 950 800 380 1,355 543 1,045 665 2,321 1,646 700 508 311 14 6 7 922 1,797 10 8 11 Monthly Monthly capacity fixed costs (SK) (K units) 24 27 22 31 7,650 3,500 5,000 4,100 2,200 Managers in both companies must decide how to allocate demand to production facilities as demand and costs change.
TelecomOne has manufacturing plants located in Baltimore, Memphis, and Wichita and serves markets in Atlanta, Boston, and Chicago. HighOptic serves markets in Denver, Omaha, and Portland from plants located in Cheyenne and Salt Lake City. Supply city Baltimore Cheyenne Salt Lake City Memphis Wichita Monthly demand (K units) Demand city Production & Transportation Cost (SK/ K units) Atlanta Boston Chicago Denver Omaha Portland 1,675 400 685 1,630 1,160 2,800 18 1,460 1,940 970 100 495 1,200 1,925 2,400 1,425 500 950 800 380 1,355 543 1,045 665 2,321 1,646 700 508 311 14 6 7 922 1,797 10 8 11 Monthly Monthly capacity fixed costs (SK) (K units) 24 27 22 31 7,650 3,500 5,000 4,100 2,200 Managers in both companies must decide how to allocate demand to production facilities as demand and costs change.
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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