Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please use Excel Solver to solve this problem. 3.4 Distributing a Product: The Lincoln Lock Company manufactures a commercial security lock at plants in Atlanta,
Please use Excel Solver to solve this problem.
3.4 Distributing a Product: The Lincoln Lock Company manufactures a commercial security lock at plants in Atlanta, Louisville, Detroit, and Phoenix. The unit cost of production at each plant is 35.50, 37.50,37.25, and $36.25, and the annual capac- ities are 18,000, 15,000, 25,000, and 20,000, respectively. The locks are sold through wholesale distributors in seven locations around the country. The unit shipping cost for each plant-distribulor combination is shown in the following table, along with the forecasted demand from each distributor for the coming year. Tacoma San Diego Dallas Denver St. Louis Tampa Baltimore Atlanta Louisville Detroit Phoenix Demand 2.50 1.85 2.75 1.75 2.00 1.60 2.10 1.80 I.65 1.90 1.50 1.85 1.00 1.90 1.85 2.30 2.25 1.25 1.50 2.25 2.00 1.90 0.90 1.60 1.75 2.00 2.50 15,400 12,500 2.65 5500 11,500 10,5009,600 6600 (c) Suppose that the unit cost at each plant were $10 higher than the original figure. What change in the optimal distribution plan would result? What if the plant costs were $20 higherStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started