Ranbaxy Chemicals produces a synthetic resin that is manufactured in two of the companys plants in Colorado

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Ranbaxy Chemicals produces a synthetic resin that is manufactured in two of the company€™s plants in Colorado Springs and Dayton. Four distributors from Buffalo, Atlanta, New Orleans, and Seattle belonging to different industries have placed orders that exceed the combined capacity of the company€™s two plants. Although the production and distribution costs vary between the two plants and the location of the customer, contractual agreements between the company and the distributors prevents Ranbaxy chemicals from selling its product only to the highest bidder. After factoring in prices, production, and distribution costs, the company has determined the profit contribution per unit between the various plant-distributor alternatives, which are given in the following table. Determine an optimum distribution plan that will maximize profits for Ranbaxy Chemicals.

To From Buffalo Capacity 4,500 5,000 Atlanta New Orleans Seattle Colorado Springs Dayton $45 $43 $40 $50 $ 47 1,500 $47

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Operations Management Managing Global Supply Chains

ISBN: 978-1506302935

1st edition

Authors: Ray R. Venkataraman, Jeffrey K. Pinto

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