Question
pictou pallets manufatures shipping pallets at two plants and distributes them to three strategically located warehouses. Plant 1 is capable of producing 8000 pallets per
pictou pallets manufatures shipping pallets at two plants and distributes them to three strategically located warehouses.
Plant 1 is capable of producing 8000 pallets per year and plant 2 is capable of producing 5000 pallets per year.
Warehouse A requires 4500 pallets, warehouse b requires 3000 pallets, and warehouse c requires 4000 pallets per year.
the cost of shipping one pallet from each plant to each warehouse are listed below:
(eg. the cost of shipping from plant 1 to warehouse A is $1.10 per pallet)
plant | warehouse a | warehouse b | warehouse c |
1 | $1.10 | $1.40 | $1.25 |
2 | $1.20 | $0.95 | $1.00 |
a) find the optimal shipping schedule to minimize shipping costs.
B) would the shipping schedule change if the cost of shipping from plant 1 to warehouse A increased by $0.30 to $1.40? explain
C) how much would the shipping charges change if plant 2's capacity were decreased by 100 pallets?
d) would the same hold for another decrease of 100 pallets?
E) the optimal shipping schedule has no pallets shipped from plant 1 to warehouse b. What change in shipping cost along this route would make such shipments worthwhile.
Please solve in Excel
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