A fruit juice manufacturer has recently begun negotiations with brokers in the areas where it intends to distribute its products. Before finalizing the agreements, however, the manager wants to determine shipping routes and costs. The firm has three plants with the capacities as shown below: Estimate demands in each of the warehouse localities are: PLANT CAPACITY (PIECES PER WEEK) WAREHOUSE 1 2 3 400 800 600 The estimated ship cost per box for the various routes are: TO FROM A B C D 1 5 7 9 12 2 10 7. 2 3 A B C D DEMAND (PIECES PER WEEK) 900 200 400 300 Supply

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section: Chapter Questions
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A fruit juice manufacturer has recently begun negotiations with brokers in the areas where it intends to distribute its
producis. Before finalizing the agreements, however, the manager wants to determine shipping routes and costs
The firm has three plants with the capacities as shown below: Estimate demands in each of the warehouse localities are:
PLANT CAPACITY (PIECES PER WEEK)
WAREHOUSE
1
2
3
400
800
600
A
B
C
D
DEMAND (PIECES PER WEEK)
900
200
400
300
The estimated ship cost per box for the various routes are:
ΤΟ
FROM
A
B
C
Ꭰ
1
5
7
9
12
2
10
7
2
3
3
8
9
6
4
Row/Column Opportunity Cost
Demand
Row/Column
Opportunity Cost
Supply
Cell
Cost of the above
allocation
Test of unallocated Cells
Amount
Total Cost
char
Transcribed Image Text:A fruit juice manufacturer has recently begun negotiations with brokers in the areas where it intends to distribute its producis. Before finalizing the agreements, however, the manager wants to determine shipping routes and costs The firm has three plants with the capacities as shown below: Estimate demands in each of the warehouse localities are: PLANT CAPACITY (PIECES PER WEEK) WAREHOUSE 1 2 3 400 800 600 A B C D DEMAND (PIECES PER WEEK) 900 200 400 300 The estimated ship cost per box for the various routes are: ΤΟ FROM A B C Ꭰ 1 5 7 9 12 2 10 7 2 3 3 8 9 6 4 Row/Column Opportunity Cost Demand Row/Column Opportunity Cost Supply Cell Cost of the above allocation Test of unallocated Cells Amount Total Cost char
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