Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Citwidge manufactures widgets at two firms, one in Memphis and one in Denver. The Memphis factory can produce up to 150 widgets per day, and

  1. Citwidge manufactures widgets at two firms, one in Memphis and one in Denver. The Memphis factory can produce up to 150 widgets per day, and the Denver factory can produce up to 200 widgets per day. Widgets are shipped by air to customers in Los Angeles and Boston. The customers in each city require 130 widgets per day. Because of the deregulation of airfares, Citwidge believes that it might be cheaper to first fly some widgets to New York or Chicago and then fly them to their final destinations. At most 100 widgets can be shipped from one city to another city. The costs of flying a widget are shown in the table below. SHOW IN EXCEL

a. Determine how to minimize the total cost of shipping the required widgets to the customers.

b. Suppose the capacities of both factories are reduced in increments of 10 widgets per day. Use SolverTable to see how much the common reduction can be before the total cost increases; before there is no feasible solution.

Unit Shipping Costs To Memphis
From Memphis Denver NY Chicago LA Boston
Denver $8 $13 $25 $28
NY $15 $12 $26 $25
Chicago $6 $16 $17
LA $6 $14 $16
Boston

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

Cost Accounting Theory And Practice

Authors: R. Palaniappan, N. Hariharan

1st Edition

9380578342, 978-9380578347

More Books

Students also viewed these Accounting questions