Question

Blue Mountain Coffee Company produces various blends of Free Trade, organic specialty coffees that it sells to wholesale customers. The company imports 25 million pounds of coffee beans annually from coffee plantations in Brazil, Indonesia, Kenya, Colombia, Côte d’Ivoire, and Guatemala. The beans are shipped from these countries to U.S. ports in Galveston, New Orleans, Savannah, and Jacksonville, where they are loaded onto container trucks and shipped to the company’s plant in Vermont. The shipping costs (in dollars per million pounds) from the countries to the U.S. ports, the amount of beans (in millions of pounds) contracted from the growers in each country, and the port capacities are shown in the following table:


The shipping costs from each port to the plant in Vermont are shown in the following table:
U.S. Port ..... Vermont
7. Galveston .... $61,000
8. New Orleans .. 55,000
9. Savannah .... 38,000
10. Jacksonville .. 43,000
Determine the optimal shipments from the grower countries to the plant in Vermont that will minimize shippingcosts.


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  • CreatedJuly 17, 2014
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