
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Transcribed Image Text: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 (BOXES PER WEEK)
DEMAND (BOXES PER WEEK)
WAREHOUSE
A
1
2
3
25,000
45,000
30.000
The estimated ship cost per box for the various routes are:
TO
FROM
A
B
C
D
I
I
2
4
5
2
2
3
3
2
3
4
2
1
Row/Column Opportunity Cost
Demand
B
C
D
Row/Column
Opportunity Cost
Cell
Total Cost
10.000
20,000
40.000
20.000
Supply
Cost of the above Test of unallocated Cells
allocation
3.
Amount
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