a) Finnish Furniture manufactures tables in facilities located in three cities-Reno, Denver, and Pitts- burgh. The tables are then shipped to three retail stores located in Phoenix, Cleveland, and Chi- cago. Management wishes to develop a distribu- tion schedule that will meet the demands at the lowest possible cost. The shipping cost per unit from each of the sources to each of the destina- tions is shown in the following table: TO FROM PHOENIX CLEVELAND CHICAGO RENO 10 16 19 DENVER 12 14 13 PITTSBURGH 18 12 12 The available supplies are 120 units from Reno, 200 units from Denver, and 160 units from Pitts- burgh. Phoenix has a demand of 140 units, Cleve- land has a demand of 160 units, and Chicago has a demand of 180 units. How many units should be shipped from each manufacturing facility to each of the retail stores if cost is to be minimized? What is the total cost?

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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Question
a) Finnish Furniture manufactures tables in facilities
located in three cities–Reno, Denver, and Pitts-
burgh. The tables are then shipped to three retail
stores located in Phoenix, Cleveland, and Chi-
cago. Management wishes to develop a distribu-
tion schedule that will meet the demands at the
lowest possible cost. The shipping cost per unit
from each of the sources to each of the destina-
tions is shown in the following table:
TO
FROM
PHOENIX CLEVELAND
CHICAGO
RENO
10
16
19
DENVER
12
14
13
PITTSBURGH
18
12
12
The available supplies are 120 units from Reno,
200 units from Denver, and 160 units from Pitts-
burgh. Phoenix has a demand of 140 units, Cleve-
land has a demand of 160 units, and Chicago has
a demand of 180 units. How many units should
be shipped from each manufacturing facility to
each of the retail stores if cost is to be minimized?
What is the total cost?
b) Finnish Furniture has experienced a decrease in
the demand for tables in Chicago; the demand
has fallen to 150 units
What special condition would exist? What is the
minimum-cost solution? Will there be any units
remaining at any of the manufacturing facilities?
Transcribed Image Text:a) Finnish Furniture manufactures tables in facilities located in three cities–Reno, Denver, and Pitts- burgh. The tables are then shipped to three retail stores located in Phoenix, Cleveland, and Chi- cago. Management wishes to develop a distribu- tion schedule that will meet the demands at the lowest possible cost. The shipping cost per unit from each of the sources to each of the destina- tions is shown in the following table: TO FROM PHOENIX CLEVELAND CHICAGO RENO 10 16 19 DENVER 12 14 13 PITTSBURGH 18 12 12 The available supplies are 120 units from Reno, 200 units from Denver, and 160 units from Pitts- burgh. Phoenix has a demand of 140 units, Cleve- land has a demand of 160 units, and Chicago has a demand of 180 units. How many units should be shipped from each manufacturing facility to each of the retail stores if cost is to be minimized? What is the total cost? b) Finnish Furniture has experienced a decrease in the demand for tables in Chicago; the demand has fallen to 150 units What special condition would exist? What is the minimum-cost solution? Will there be any units remaining at any of the manufacturing facilities?
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