Delton chemicals ltd.are producing their main product in their three factories that are located at Awendo Rapogi
Question:
Delton chemicals ltd.are producing their main product in their three factories that are located at Awendo Rapogi and oria. The product is sold through 4 distributors who are again located at at different places in Migori. They are Olasi, Opasi, kamasaga and nyamasare. The cost in sh. of a product per unit and the capacity of each factory in units is given below;
Factory | Cost(sh.) per unit | Capacity (in units) |
Awendo | 12 | 200 |
Rapogi | 15 | 300 |
Oria | 11 | 100 |
The sale price at which the product is sold to distributors are given in the following table
Distributors | selling price (in shs.) | Demand (in units) |
Olasi | 16 | 150 |
Opasi | 17 | 250 |
Kamasaga | 15 | 100 |
Nyamasare | 19 | 200 |
The distribution cost per unit from factory is given to a distributor is given in the following matrix
Factory/Distributors | Olasi | Opasi | Kamasaga | Nyamasare |
Awendo | 10 | 11 | 12 | 15 |
Rapogi | 21 | 20 | 25 | 30 |
Oria | 18 | 15 | 11 | 16 |
Required
Find an optimal distribution programme for the company
Statistics Principles and Methods
ISBN: 978-0470904114
7th edition
Authors: Richard A. Johnson, Gouri K. Bhattacharyya