Company A has hired you to evaluate its shipping costs. The following table shows present demand, capacity and freight costs between each factory and each warehouse. Find the shipping pattern with the lowest cost. Use the northwest-corner method. What is its total cost? Use the intuitive lowest-cost approach. What is its total cost?
Company A has hired you to evaluate its shipping costs. The following table shows present demand, capacity and freight costs between each factory and each warehouse. Find the shipping pattern with the lowest cost. Use the northwest-corner method. What is its total cost? Use the intuitive lowest-cost approach. What is its total cost?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Company A has hired you to evaluate its shipping costs. The following table shows present demand, capacity and freight costs between each factory and each warehouse. Find the shipping pattern with the lowest cost.
Use the northwest-corner method. What is its total cost?
Use the intuitive lowest-cost approach. What is its total cost?
Based on your findings in question above, comments the effective approach in conducting the transportation method. Briefly explain the different, limitation, advantages, disadvantages and feasibility of each approach
Transcribed Image Text:To
Plant
From
Warehouse Warehouse Warehouse Warehouse
Capacity
1
2
3
4
Factory 1
RM4
RM7
RM10
RM12
2000
Factory 2
RM7
RM5
RM8
RM11
2500
Factory 3
RM9
RM8
RM6
RM9
2200
Warehouse
1500
2000
2000
1200
Demand
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