Question
Revisit the Goodwin Manufacturing Company. Imagine a policy requiring that every shipping route must be used and, in particular, that the shipment volume on any
Revisit the Goodwin Manufacturing Company. Imagine a policy requiring that every shipping route must be used and, in particular, that the shipment volume on any route out of a plant must be at least 20% of the total volume leaving that plant. Standard capacity 16,000 units
(To) Warehouse (From) Plant Atlanta Boston Chicago Denver Minneapolis 0.24 0.19 0.07 0.11 Pittsburgh 0.10 0.05 0.04 0.15 Tucson 0.26 0.41 0.32 0.27
a. By how much does the optimal total cost increase as a result of the set of minimum requirements? b. How many shipment quantities are altered by the imposition of the 20% floor requirements?
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