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3. Excelsior Furniture inc., located in Europe, manufactures office furniture. The Company currently has factories in Hamburg, Germany, and Vienna, Austria. The company ships
3. Excelsior Furniture inc., located in Europe, manufactures office furniture. The Company currently has factories in Hamburg, Germany, and Vienna, Austria. The company ships its office furniture products for distribution to retail stores to Warehouses in Paris, Amsterdam and Milan. Because the demand for one of the company's popular products, Office desks, is expected to increase in the coming years, Excelsior has decided to open a third factory in Berne, Switzerland. Relevant data on production and shipping costs, expected demand for the company's office desks, and the production capacities of the three factories are given below. Use the transportation model to develop a least cost production and shipping plan for Excelsior. (2 pts.) To Hamburg Vienna Berne From Expected Demand Paris $9 $10 $8 1,400 Amsterdam $5 $5 $7 1,700 Milan $4 $4 $6 900 Production Cost /Unit $9 $7 $8 Production Capacity 1,500 900 1600
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