In Problem 13, the Shotz Beer Company management negotiated a new shipping contract with a trucking firm
Question:
In Problem 13, the Shotz Beer Company management negotiated a new shipping contract with a trucking firm between its Tampa brewery and its distributor in Kentucky. This contract reduces the shipping cost per barrel from $0.80 per barrel to $0.65 per barrel. How will this cost change affect the optimal solution?
Data From Problem 13:
The Shotz Beer Company has breweries in two cities; the breweries can supply the following numbers of barrels of draft beer to the company’s distributors each month:
The distributors, which are spread throughout six states, have the following total monthly demand:
The company must pay the following shipping costs per barrel:
Solve this problem by using the computer.
Step by Step Answer: