Question
A manufacturer produces a product at thre e plants and distributes it through four market - service warehouses. The following data have been provided: Warehouse
A manufacturer produces a product at thre
e plants and distributes it through four market
-
service
warehouses. The following data have been provided:
Warehouse
Selling
Price
Annual
Demand
Plant
Variable
Cost
Annual
Capacity
From
Plant
To Warehouse, P/unit
P/unit
Units
P/unit
Units
1
2
3
4
1
50.00
40,000
A
20.00
40,000
A
10.00
10.00
15.00
15.00
2
55.00
10,000
B
17.50
30,000
B
10.00
5.00
17.50
20.00
3
50.00
20,000
C
22.50
45,000
C
22.50
15.00
10.00
10.00
4
30.00
25,000
a.
Suppose the marketing manager wishes to meet
all demands
at minimum cost. How will the
items be distributed?
b.
Suppose the group vice president wishes to meet
only those demands that are incrementally
profitable
. How will the items be distributed?
c.
Do you agree with the marketing manager
'
s
or with the group vice president
'
s
idea
? Why?
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Multiple Time Scale Dynamics
Authors: Christian Kuehn
1st Edition
3319123165, 9783319123165
