In Problem S11-8, the Adams Brewing Company management has negotiated a new shipping contract with a trucking
Question:
In Problem S11-8, the Adams Brewing Company management has negotiated a new shipping contract with a trucking firm between its Tampa brewery and its distributor in Kentucky that reduces the shipping cost per barrel from $0.80 per barrel to $0.55 per barrel. How will this cost change affect the optimal solution?
Data From Problem S11-8:
The John Adams Brewing Company has breweries in three cities; the breweries can supply the following numbers of barrels of draft beer to the company’s distributors each month:
The distributors, spread throughout six states, have the following total monthly demand:
The company must pay the following shipping costs per barrel:
Determine the minimum cost shipping routes for the company.
Step by Step Answer:
Operations Management Creating Value Along the Supply Chain
ISBN: 978-0470525906
7th Edition
Authors: Roberta S. Russell, Bernard W. Taylor