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Hansen Controls has been awarded a contract for a large number of control panels. To meet this demand, it will use its existing plants in
Hansen Controls has been awarded a contract for a large number of control panels. To meet this demand, it will use itsexisting plantsin San Diego and Houston, and consider buildingnew plantsin Tulsa, St. Louis, and Portland. Finished control panels are to be shipped to Seattle, Denver, and Kansas City. Pertinent information regarding (i) construction costs, (ii) supply capacity, (iii) demand requirements, and (iv) shipping cost per unit are given inthe following table
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he appropriate variable Table for Questions AD shipping cost to sources construction Destination cost seattlellDenver Kansas city Supply San Diego 5 7 capacity Houston 10 8 2, 500 2, 560 Tulsa 350, 0/0 0 4 13 10, 0 0 0 St. Louis 200 / 010/0 12 6 2 10, 00 0 Portland 480, 000 4 10 10,000 Demand 3, OOD 18,000 9, 000Number of units shipped from each Source to each Destination Construction Supply Sources Cost Kansas Capacity Seattle Denver City San 2,500 0 Diego 2,500 Houston 0 0 2,500 Tulsa 350,000 8,000 0 10,000 St. Louis 200,000 0 0 10,000 Portland 480,000 0 0 0 10,000 Demand 3,000 8,000 9,000Step by Step Solution
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