Klein Chemicals, Inc., produces a special oil-based material that is currently in short supply. Four of Kleins

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Klein Chemicals, Inc., produces a special oil-based material that is currently in short supply. Four of Klein€™s customers have already placed orders that together exceed the combined capacity of Klein€™s two plants. Klein€™s management faces the problem of deciding how many units it should supply to each customer. Because the four customers are in different industries, different prices can be charged because of the various industry pricing structures. However, slightly different production costs at the two plants and varying transportation costs between the plants and customers make a €œsell to the highest bidder€ strategy unacceptable. After considering price, production costs, and transportation costs, Klein established the following profit per unit for each plant-customer alternative:

Klein Chemicals, Inc., produces a special oil-based material tha

The plant capacities and customer orders are as follows:

Klein Chemicals, Inc., produces a special oil-based material tha

How many units should each plant produce for each customer to maximize profits? Which customer demands will not be met? Show your network model and linear programmingformulation.

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Quantitative Methods For Business

ISBN: 148

11th Edition

Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Cam

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