Your company is a leading automotive manufacturing company with multiple production plants and distribution centres. They produce
Question:
Your company is a leading automotive manufacturing company with multiple production plants and distribution centres. They produce various automotive components and assemble finished vehicles. To maximize profits, your company aims to determine the optimal production and distribution plan while adhering to constraints such as production capacities, resource availability, and market demand.
Problem Description:
Your company has three production plants (Plant A, Plant B, and Plant C) and four distribution centres (Centre 1, Centre 2, Centre 3, and Centre 4). The production capacity and demand for each product at the plants and centers are as follows:
Production Capacity at Plants: |
Plant A: 400 units of Product X, 300 units of Product Y Plant B: 500 units of Product X, 400 units of Product Y Plant C: 600 units of Product X, 200 units of Product Y |
Market Demand at Distribution Centers: |
Center 1: 200 units of Product X, 300 units of Product Y Center 2: 400 units of Product X, 100 units of Product Y Center 3: 300 units of Product X, 200 units of Product Y Center 4: 250 units of Product X, 150 units of Product Y |
Transportation Costs (usd) per unit from Plants to Centers:
Center 1 | Center 2 | Center 3 | Center 4 | |
Plant A | 6 | 8 | 5 | 9 |
Plant B | 9 | 10 | 7 | 6 |
Plant C | 11 | 7 | 9 | 8 |
Minimize the total transportation cost while meeting the demand and production constraints.
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young