State University must purchase 1200 computers from three vendors. Vendor 1 charges $250 per computer plus a total delivery charge of $5000. Vendor 2 charges $300 per computer plus a total delivery charge of $4000. Vendor 3 charges $350 per computer plus a total delivery charge of $6000. Vendor 1 will sell the university at most 800 computers, vendor 2, at most 600, and vendor 3, at most 400. The minimum order from any vendor is 300 computers. Determine how to minimize the cost of purchasing the needed computers.
State University must purchase 1200 computers from three vendors. Vendor 1 charges $250 per computer plus a total delivery charge of $5000. Vendor 2 charges $300 per computer plus a total delivery charge of $4000. Vendor 3 charges $350 per computer plus a total delivery charge of $6000. Vendor 1 will sell the university at most 800 computers, vendor 2, at most 600, and vendor 3, at most 400. The minimum order from any vendor is 300 computers. Determine how to minimize the cost of purchasing the needed computers.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter11: Strategic Cost Management
Section: Chapter Questions
Problem 21E: This year, Hassell Company will ship 4,000,000 pounds of chocolates to customers with total...
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State University must purchase 1200 computers from three vendors. Vendor 1 charges $250 per computer plus a total delivery charge of $5000. Vendor 2 charges $300 per computer plus a total delivery charge of $4000. Vendor 3 charges $350 per computer plus a total delivery charge of $6000. Vendor 1 will sell the university at most 800 computers, vendor 2, at most 600, and vendor 3, at most 400. The minimum order from any vendor is 300 computers. Determine how to minimize the cost of purchasing the needed computers.
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