A company has warehouses in Los Angeles, St. Louis and Boston. The company has six retail outlets
Question:
A company has warehouses in Los Angeles, St. Louis and Boston. The company has six retail outlets throughout the United States which place orders, which the company then ships from one of the warehouses. The company wants to meet the needs of all six retail outlets from available inventory and keep total shipping charges as minimum as possible. Per unit shipping cost from each warehouse to each retail outlet is given to you in table below. For example, the cost to ship a unit from Los Angeles to Denver is $58. The exact Product needs of each retail store are given. For example, Denver needs 150 units, Houston needs 225, Atlanta 100, Miami 250, Seattle 120 and Detroit needs 150 respectively. The amount of inventory at each of the three warehouses is given to you in another table. The number of units remaining in each warehouse's inventory must not be negative (that is they cannot ship more than what is available). Solve for minimizing the cost of the all orders, while still supplying each retail outlet with the exactly the desired number of units. (Marks=10)
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr