Volvo Logistics handles shipping for Volvo Trucks NorthAmerica from two Factories. One of these products is a turret lathe. Orders have been received from three customers to purchase some turret lathes next month. The lathes will be shipped individually to these customers. The Table on the next page shows the relevant order information as well as the shipping cost for each lathe. From: Factory 1 Factory 2 Order size To: Shipping Cost for each Lathe Customer 1 Customer 2 $700 $800 10 lathes $900 $900 8 lathes Customer 3 $800 $700 9 lathes Shipping Output 12 lathes 15 lathes The company's distribution manager wants to determine how many machines to ship from each actory to satisfy the order at minimum costs. Help her.
Volvo Logistics handles shipping for Volvo Trucks NorthAmerica from two Factories. One of these products is a turret lathe. Orders have been received from three customers to purchase some turret lathes next month. The lathes will be shipped individually to these customers. The Table on the next page shows the relevant order information as well as the shipping cost for each lathe. From: Factory 1 Factory 2 Order size To: Shipping Cost for each Lathe Customer 1 Customer 2 $700 $800 10 lathes $900 $900 8 lathes Customer 3 $800 $700 9 lathes Shipping Output 12 lathes 15 lathes The company's distribution manager wants to determine how many machines to ship from each actory to satisfy the order at minimum costs. Help her.
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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