Toyco produces a line of Bonnie dolls and accessories at its plants in New York and Baltimore

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Toyco produces a line of Bonnie dolls and accessories at its plants in New York and Baltimore that must be shipped to distribution centers in Chicago and Los Angeles. The company uses Air Freight, Inc., to make its shipments. Suppose that it can ship directly or through Pittsburgh and Denver. The daily production rates at the plants are respectively 5,000 and 7,000 units daily, and the demands at the distribution centers are respectively 3,500 and 8,500 units daily. The costs of shipping 1,000 units are given in the following table. Find the optimal shipping routes and the associated cost.

TO Pittsburgh Denver Chicago Los Angeles F New York $182 $375 $285 $460 R Baltimore 77 290 245 575 O Pittsburgh — 275 125 380 M Denver — — 90 110

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Production And Operations Analysis

ISBN: 9781478623069

7th Edition

Authors: Steven Nahmias, Tava Lennon Olsen

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