Kos Farms processes organic heirloom vegetables from its four processing plants where the vegetables are cleaned and packaged to its four warehouses. The following two tables show the capacities, forecasted demand, and processing and shipping costs. Determine how many cases should be shipped from each processing plant to each warehouse to minimize the total processing and shipping costs. Capacity (Cases/week)WarehouseDemand (Cases/week)9,0007,0006,000PlantMilwaukee9,0007,0008,0005,000DenverChicagoLincolnToledoPitts burghNashvilleAtlanta8,00029,00030,000Processing & Shipping Cost per CasePittsburghPlantDenverLincolnAtlantaMilwaukee$4.00$3.00$7.00$12.00Chicago$5.00$4.00$5.00$10.00Toledo$10.00$8.00$2.00$7.00Nashville$11.00$8.00$4.00$5.00

Answered: Kos Farms processes organic heirloom…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Kos Farms processes organic heirloom vegetables from its four processing plants where the vegetables are cleaned and packaged to its four warehouses. The following two tables show the capacities, forecasted demand, and processing and shipping costs.

Determine how many cases should be shipped from each processing plant to each warehouse to minimize the total processing and shipping costs.

Capacity (Cases/week)
Warehouse
Demand (Cases/week)
9,000
7,000
6,000
Plant
Milwaukee
9,000
7,000
8,000
5,000
Denver
Chicago
Lincoln
Toledo
Pitts burgh
Nashville
Atlanta
8,000
29,000
30,000
Processing & Shipping Cost per Case
Pittsburgh
Plant
Denver
Lincoln
Atlanta
Milwaukee
$4.00
$3.00
$7.00
$12.00
Chicago
$5.00
$4.00
$5.00
$10.00
Toledo
$10.00
$8.00
$2.00
$7.00
Nashville
$11.00
$8.00
$4.00
$5.00

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