In order to be able to deal more effectively with unforeseen events (such as the road closing),
Question:
In order to be able to deal more effectively with unforeseen events (such as the road closing), Major Motors has established two transshipment points between the factories and the regional distribution centers at Santa Fe, New Mexico, and Jefferson City, Missouri. The cost of shipping 100 cars to the transshipment points is (in $1,000s):
TO F Santa Fe Jefferson City R Flint 8 6 O Fresno 6 9 M Monterrey 9 14 while the cost of shipping from the transshipment points to the distribution centers is TO F Phoenix Davenport Columbia R Santa Fe 3 8 10 O Jefferson City 5 5 9 M Assuming that none of the direct routes between the factories and the distribution centers is available, find the optimal flow of cars through the transshipment points that minimizes the total shipping costs.
Step by Step Answer:
Production And Operations Analysis
ISBN: 9781478623069
7th Edition
Authors: Steven Nahmias, Tava Lennon Olsen