9-13 Finnish Furniture manufactures tables in facilities located inthree cities-Reno, Denver, and Pittsburgh. The tables are thenshipped to three retail stores located in Phoenix, Cleveland, andChicago. Management wishes to develop a distribution schedulethat will meet the stores' demands at the lowest possible cost.The shipping cost per unit from each of the sources to each ofthe destinations is shown in the following table: TO FROMPHOENIXCLEVELANDCHICAGORENO101619DENVER121413PITTSBURGH181212The available supplies are 120 units from Reno, 200 fromDenver, and 160 from Pittsburgh. Phoenix has a demand of 140units, Cleveland has a demand of 160 units, and Chicago has ademand of 180 units. How many units should be shipped fromeach manufacturing facility to each of the retail stores if cost isto be minimized? What is the total cost?

Answered: Image /qna-images/answer/d0fd9628-1b03-426a-9781-269357df1741.jpg

Answered: The available supplies are 120 units…

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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The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January 1,400 May February 1,500 June 2,200 2,200 March April 1,800 1,700 July August 1,700 1,500 Her operations manager is considering a new plan, which begins in January with 200 units on hand and ends with zero inventory. Stockout cost of lost sales is $100 per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time costs. The plan is called plan B. Plan B: Produce at a constant rate of 1,400 units per month, which will meet minimum demands. Then use subcontracting, with additional units at a premium price of $80 per unit. Subcontracting capacity is limited to 800 units per month. Evaluate this plan by computing the costs for January through August. In order to arrive at the costs, first compute the ending inventory and subcontracting units for each month by filling in the table below (enter your responses as whole numbers). Period…
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