Question
he AppleBerry Company has three warehouses where it stores its tablet computer devices and four distributors that place these products in retail stores and online.
he AppleBerry Company has three warehouses where it stores its tablet computer devices and four distributors that place these products in retail stores and online. Each warehouse holds 5000 devices. Because of the various distances between the warehouses and the distribution centers, there are different costs to ship the devices from each warehouse to each distributor. The cost per device for shipping between the warehouses and distributors is given in the table below. Additionally, each distributor has calculated an estimated monthly demand for the tablet and does not want to receive any more tablets than this estimated demand.
From | To | |||
| Dist 1 | Dist 2 | Dist 3 | Dist 4 |
Whse A | $8 | $10 | $6 | $3 |
Whse B | $9 | $15 | $8 | $6 |
Whse C | $5 | $12 | $5 | $7 |
Distributor | Estimated Monthly Demand |
1 | 2500 |
2 | 2500 |
3 | 2000 |
4 | 3500 |
- Given these facts, how many devices should be shipped from each warehouse to each distributor per month, in order for AppleBerry to minimize its costs? What is this minimized cost? Set this up as a spreadsheet using Solver.
- AppleBerry is looking to shut down one of its warehouses. In your opinion, based on this model, which warehouse should be shut down? Explain your answers.
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