
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Suppose the company has received a proposal for setting up another warehouse
(Warehouse E) with a capacity of 900 units. The location of the warehouse is such that
the unit costs of transporting to the six cities are as follows: Hyderabad–45, Mysore–
75, Chennai–30, Kochi–65, Pune–90 and Vizag–80. The company would like to know
how the allocation will change if the warehouse is made operational and the likely cost
impact on the operation of the system.
After balancing above table by which method we should solve this problem
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