The CoolAire Company manufactures air conditioners that are sold to five different retail customers across the United States. The company is evaluating its manufacturing and logistics strategy to ensure that it is operating in the most efficient manner possible. The company can produce air conditioners at six plants across the country and stock these units in any of four different candidate warehouses. The cost of manufacturing and shipping a unit between each plant and warehouse is summarized in the following table along with the monthly capacity and fixed cost of operating each plant. Plant 1 Plant 2 Plant 3 Plant 4 Plant 5 Plant 6 Warehouse 1 $700 $800 $850 $600 $500 $700 Warehouse 2 $1,000 $500 $600 $800 $600 $600 Warehouse 3 $900 $600 $700 $500 $450 $750 Warehouse 4 $1,200 $700 $500 $600 $700 $500 Fixed Cost $55,000 $40,000 $45,000 $50,000 $42,000 $40,000 Capacity 300 200 300 250 350 400 Impact on environment 5 9 7 6 8 9 Similarly, the per-unit cost of shipping units from each warehouse to each customer is given in the following table, along with the monthly fixed cost of operating each warehouse. Impact on
The CoolAire Company manufactures air conditioners that are sold to five different retail customers across the United States. The company is evaluating its manufacturing and logistics strategy to ensure that it is operating in the most efficient manner possible. The company can produce air conditioners at six plants across the country and stock these units in any of four different candidate warehouses. The cost of manufacturing and shipping a unit between each plant and warehouse is summarized in the following table along with the monthly capacity and fixed cost of operating each plant. Plant 1 Plant 2 Plant 3 Plant 4 Plant 5 Plant 6 Warehouse 1 $700 $800 $850 $600 $500 $700 Warehouse 2 $1,000 $500 $600 $800 $600 $600 Warehouse 3 $900 $600 $700 $500 $450 $750 Warehouse 4 $1,200 $700 $500 $600 $700 $500 Fixed Cost $55,000 $40,000 $45,000 $50,000 $42,000 $40,000 Capacity 300 200 300 250 350 400 Impact on environment 5 9 7 6 8 9 Similarly, the per-unit cost of shipping units from each warehouse to each customer is given in the following table, along with the monthly fixed cost of operating each warehouse. Impact on
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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