Forbelt Corporation has a one-year contract to supply motors for all refrigerators produced by the Ice Age
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Boston ........ 50
Dallas ......... 70
Los Angeles ...... 60
St. Paul ......... 80
Forbelts three plants are capable of producing the motors. The plants and production capacities (in thousands) are
Denver ............ 100
Atlanta ............ 100
Chicago ........... 150
Because of varying production and transportation costs, the profit that Forbelt earns on each lot of 1000 units depends on which plant produced the lot and which destination it was shipped to. The following table gives the accounting department estimates of the profit per unit (shipments will be made in lots of 1000 units):
With profit maximization as a criterion, Forbelts management wants to determine how many motors should be produced at each plant and how many motors should be shipped from each plant to each destination.
a. Develop a network representation of this problem.
b. Find the optimalsolution.
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Quantitative Methods for Business
ISBN: 978-0324651751
11th Edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey cam
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