Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A firm from Zagreb distributes its products at the Zagreb market. The market research study shows that the firm expansion is needed. For this

image text in transcribed

A firm from Zagreb distributes its products at the Zagreb market. The market research study shows that the firm expansion is needed. For this reason, the considered firm is planning to open two branches in Rijeka, Pula or Umag. The quantity demands, opening costs and capacities of the areas are given in the following table: Demand Rijeka 10 Pula 15 Umag 20 Opening cost 120 Capacity 15 150 20 200 30 The transportation fixed cost, unit transportation cost and transportation capacities are given in the following tables. The transportation fixed cost: Rijeka Pula Umag Rijeka 1 2 3 Pula 3 0.5 2 Umag 2.5 3 1 The unit transportation cost: Rijeka Pula Umag Rijeka 2 3 3 Pula 2.5 1 2 Umag 3 2.5 2 The transportation capacities: Rijeka Pula Umag Rijeka 10 8 8 Pula 10 15 10 Umag 10 15 20 Find the optimal distribution plan (the branch locations and quantities that will be distributed) in order to minimize the total cost (opening and transportation cost).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quantitative Methods For Business

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

11th Edition

978-0324651812, 324651813, 978-0324651751

More Books

Students also viewed these General Management questions

Question

How does national culture relate to business structures?

Answered: 1 week ago

Question

What is the use of bootstrap program?

Answered: 1 week ago