Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (11th Edition)
Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (11th Edition)
11th Edition
ISBN: 9780134111056
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 13, Problem 19P

A

Summary Introduction

Case Summary: To get maximum profit during choose an ideal plant location; shipping cost is the huge expense in a business organization. Before calculating the shipping cost, the cost should be reduced to progress of business. Several factors like package dimensions, weight, and shipping destination must be considered.

Interpretation:the reason forthe logistic manager should not increase the budget.

B

Summary Introduction

Case Summary: To get maximum profit during choose an ideal plant location; shipping cost is the huge expense in a business organization. Before calculating the shipping cost, the cost should be reduced to progress of business. Several factors like package dimensions, weight, and shipping destination must be considered.

Interpretation: The budget amount for increasing the shipping cost

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A company has a contract to move 700 units of a product per day between three plants A, B, and C, and three destinations, X, Y, and Z. Cost (in hundreds of pesos) and volume information are given below. Compute the optimal transportation cost.
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