# Question

A food company produces tomato sauce at five different plants. The tomato sauce is then shipped to one of three warehouses, where it is stored until it is shipped to one of the company’s four customers. All of the inputs for the problem are given in the file

S14_92.xlsx, as follows:

• The plant capacities (in tons)

• The cost per ton of producing tomato sauce at each plant and shipping it to each warehouse

• The cost of shipping a ton of sauce from each warehouse to each customer

• The customer requirements (in tons) of sauce

• The fixed annual cost of operating each plant and warehouse.

The company must decide which plants and warehouses to open, and which routes from plants to warehouses and from warehouses to customers to use. All customer demand must be met. A given customer’s demand can be met from more than one warehouse, and a given plant can ship to more than one warehouse.

a. Determine the minimum-cost method for meeting customer demands.

b. Use SolverTable to see how a change in the capacity of plant 1 affects the total cost.

c. Use SolverTable to see how a change in the customer 2 demand affects the total cost.

S14_92.xlsx, as follows:

• The plant capacities (in tons)

• The cost per ton of producing tomato sauce at each plant and shipping it to each warehouse

• The cost of shipping a ton of sauce from each warehouse to each customer

• The customer requirements (in tons) of sauce

• The fixed annual cost of operating each plant and warehouse.

The company must decide which plants and warehouses to open, and which routes from plants to warehouses and from warehouses to customers to use. All customer demand must be met. A given customer’s demand can be met from more than one warehouse, and a given plant can ship to more than one warehouse.

a. Determine the minimum-cost method for meeting customer demands.

b. Use SolverTable to see how a change in the capacity of plant 1 affects the total cost.

c. Use SolverTable to see how a change in the customer 2 demand affects the total cost.

## Answer to relevant Questions

You are given the following means, standard deviations, and correlations for the annual return on three potential investments. The means are 0.12, 0.15, and 0.20. The standard deviations are 0.20, 0.30, and 0.40. The ...You are a CFA (chartered financial analyst). An overextended client has come to you because she needs help paying off her credit card bills. She owes the amounts on her credit cards listed in the file S14_98.xlsx. The client ...This problem deals with strategic planning issues for a large company.18 The main issue is planning the company’s production capacity for the coming year. At issue is the overall level of capacity and the type of ...Use @RISK to draw a triangular distribution with parameters 200, 300, and 600. Then superimpose a normal distribution on this drawing, choosing the mean and standard deviation to match those from the triangular distribution. ...If you add several normally distributed random numbers, the result is normally distributed, where the mean of the sum is the sum of the individual means, and the variance of the sum is the sum of the individual variances. ...Post your question

0