Kelly Foods has two plants and ships canned vegetables to customers in four cities. The cost of

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Kelly Foods has two plants and ships canned vegetables to customers in four cities. The cost of shipping one case from a plant to a customer is given in the following table.

Plant/Customer Chicago Cincinnati Indianapolis Pittsburgh Akron $1.70 $2.30 $2.50 $2.15 Evansville $1.95 $2.35 $1.65 $2.95 The plant in Akron has a capacity of 2,800 cases per week, and the Evansville plant can produce 4,500 cases per week. Customer orders for the next week are Chicago: 2,000 cases Cincinnati: 1,200 cases Indianapolis: 2,500 cases Pittsburgh: 1,400 cases Find the minimum-cost shipping plan. Interpret the Sensitivity report and write a short memo to the VP of Operations explaining your results.

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Business Analytics

ISBN: 9781292095448

2nd Global Edition

Authors: James R. Evans

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