A company has manufacturing plants in Las Vegas, Portland, and Seattle. Items pr

Question

A company has manufacturing plants in Las Vegas, Portland, and Seattle. Items produced from these plants are boxed and shipped to warehouses in Minneapolis and Chicago where they are tested and repackaged for distribution to final customers in New York, Miami, and Charlotte. The network of transshipment routes shown below indicates the cost associated with shipping a box from the plants to the warehouses and then the cost of shipping the repackaged units from the warehouses to the final customers. Assume that the supply and demand requirements are as shown in the table below. From the table above it is to be understood that Las Vegas can supply a maximum of 1500 units a month, while Charlotte has monthly demand of 3500 units. The company would like to determine the lowest cost shipping and distribution plan. The following solution was produced using Microsoft Excel. How many boxes are sent from Seattle to the Miami transshipment point?

Explanation / Answer

There is unlimited storage/capacity limit in transit locations like Chicago and Minneapolis

We can directly map source to destation using mimimum transit cost.

For example Las Vegas to new york can cost 27 via MP and 39 via Chicago. So LV to NYC will always be vi MP.

SImilarly we can map the cost table as below

Cost Table New York Miami Charlotte Las Vegas 27 27 31 Portland 26 30 34 Seattle 25 28 32

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.