Question
(P5-18) A food distribution company ships fresh spinach from its four packing plants to large East-Coast cities. The shipping costs per crate and the supply
(P5-18) A food distribution company ships fresh spinach from its four packing plants to large East-Coast cities. The shipping costs per crate and the supply and demand are shown in the table below.
Formulate a model that will permit the company to meet its demand at the lowest possible cost.
The company wishes to spread out the source for each of its markets to the maximum extent possible. To accomplish this, it will accept a 5% increase in its total transportation cost from part (a). What is the new transportation plan, and what is the new cost?
| MARKETS | |||||
| Packing Plants | Atlanta | Boston | Charlestown | Dover | Supply |
| Eaglestown | $6.00 | $7.00 | $7.50 | $7.50 | 8,000 |
| Farrier | $5.50 | $5.50 | $4.00 | $7.00 | 10,000 |
| Guyton | $6.00 | $5.00 | $6.50 | $7.00 | 5,000 |
| Hayesville | $7.00 | $7.50 | $8.50 | $6.50 | 9,000 |
| Demand | 8,000 | 9,000 | 10,000 | 5,000 |
|
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Effective Writing A For Accountants
Authors: Claire B. May, Gordon S. May
9th Edition
0132567245, 9780132567244
