In Problem 13, the Shotz Beer Company management negotiated a new shipping contract with a trucking firm

Question:

In Problem 13, the Shotz Beer Company management negotiated a new shipping contract with a trucking firm between its Tampa brewery and its distributor in Kentucky. This contract reduces the shipping cost per barrel from $0.80 per barrel to $0.65 per barrel. How will this cost change affect the optimal solution?

Data From Problem 13:

The Shotz Beer Company has breweries in two cities; the breweries can supply the following numbers of barrels of draft beer to the company’s distributors each month:

                              

The distributors, which are spread throughout six states, have the following total monthly demand:

                              

The company must pay the following shipping costs per barrel:

                              

Solve this problem by using the computer.

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