Sarah D has three warehouses and ships her CDs to three customers. The following shipping cost, warehouse
Question:
Sarah D has three warehouses and ships her CDs to three customers. The following shipping cost, warehouse capacities and customer demands are given to you from the logistics office. You are tasked with finding the lowest cost method of satisfying the customer demands.
Retro Records needs 600 units Warehouse 1 can ship 600 units
Media Man needs 400 units Warehouse 2 can ship 900 units
Disc City needs 200 units Warehouse 3 can ship 700 units
Sam's House needs 1000 units
Shipping cost from Warehouse cost from Warehouse 1 to Retro Records is $0.07
Shipping cost from Warehouse cost from Warehouse 1 to Media Man is S0.02
Shipping cost from Warehouse cost from Warehouse 1 to Disc City is $0.08
Shipping cost from Warehouse cost from Warehouse 1 to Sam's House is $0.09
Shipping cost from Warehouse cost from Warehouse 2 to Retro Records is $0.05
Shipping cost from Warehouse cost from Warehouse 2 to Media Man is S0.03
Shipping cost from Warehouse cost from Warehouse 2 to Disc City is $0.01
Shipping cost from Warehouse cost from Warehouse 2 to Sam's House is $0.06
Shipping cost from Warehouse cost from Warehouse 3 to Retro Records is $0.04
Shipping cost from Warehouse cost from Warehouse 3 to Media Man is S0.06
Shipping cost from Warehouse cost from Warehouse 3 to Disc City is $0.07
Shipping cost from Warehouse cost from Warehouse 3 to Sam's House is $0.04
a. Set up the first tableau using the North-West corner method, find the row and column values, and find the entering cell.
b. Solve for the cost minimizing shipping schedule
c. Warehouse 2 can only ship 600 units this week. What is the new shipping schedule? Explain what your result implies. (Provide the solver sheets)
Operations and Supply Chain Management
ISBN: 978-1118738542
8th edition
Authors: Roberta S. Russell, Bernard W. Taylor