Question: Efe & Mert Co. are deciding between four distribution channels to minimize their cost. Using the report below please answer the following questions. Make sure

Efe & Mert Co. are deciding between four
Efe & Mert Co. are deciding between four distribution channels to minimize their cost. Using the report below please answer the following questions. Make sure to show all the steps to obtain full points. Variable Cells Final Value Reduced Cost Objective Coefficient Allowable Increase Allowable Decrease Cell Name 180 68 1E+30 68 B Units shipped by channel 0 B Units shipped by channel 400 IC 168 25 0 1E+30 0 140 22 1E+30 Units shipped by channel D 200 D Units shipped by channel E 0 E Constraints 148 120 1E+30 148 Final Value Cell Name Shadow Price Constraint R.H Side Allowable Increase Allowable Decrease 1 -28 5000 400 50 2 0 1800 1E+30 20 Budget 5000 Work force availability 1780 Shipment level 600 Channel D requirement 200 3 196 600 3.57 45 4 0 150 50 1E+30 1. What is the optimal solution? 2. Write a mathematical expression to find the total cost (Note you do not need to compute the end result but you need to write the numbers used clearly) 3. Which ones are the non-binding constraint and how much slack/surplus on each of them? 4. What happens if the cost for channel B is reduced to $10? 5. How would the cost change if they have $50 less budget available? 6. How would the cost change if the channel D shipment requirement is 100

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!