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A stockout rate of R12/unit applies for the short supply of products to the customers. Assist the company to find the shipment plan that will allow them to maximise profits.

A stockout rate of R12/unit applies for the short supply of products to the customers. Assist the company to find the shipment plan that will allow them to maximise profits.

Essentials of Business Analytics (MindTap Course List)
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter11: Linear Optimization Models
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Problem 7P: Vollmer Manufacturing makes three components for sale to refrigeration companies. The components are...
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A company manufactures a type of product in three different production plants: P1, P2 and P3. Each of these production plants can produce up to 1570 units per month. The company supplies four customers who require each 1000, 1200, 1500 and 1000 units per month. The company makes a gross profit of R110/unit (excluding transport cost). The transportation rates (Rand/unit) from each production plant to each customer are displayed below: ETTTI Customer 3 25 Customer 1 Customer 2 Customer 4 Plant 1 30 10 20 30 15 Plant 2 15 25 10 Plant 3 20 30 20 A stockout rate of R12/unit applies for the short supply of products to the customers. Assist the company to find the shipment plan that will allow them to maximise profits.
Transcribed Image Text:A company manufactures a type of product in three different production plants: P1, P2 and P3. Each of these production plants can produce up to 1570 units per month. The company supplies four customers who require each 1000, 1200, 1500 and 1000 units per month. The company makes a gross profit of R110/unit (excluding transport cost). The transportation rates (Rand/unit) from each production plant to each customer are displayed below: ETTTI Customer 3 25 Customer 1 Customer 2 Customer 4 Plant 1 30 10 20 30 15 Plant 2 15 25 10 Plant 3 20 30 20 A stockout rate of R12/unit applies for the short supply of products to the customers. Assist the company to find the shipment plan that will allow them to maximise profits.
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