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Sports of All Sorts produces, distributes, and sells high-quality skateboards. Its supply chain consists of three factories (located in Detroit, Los Angeles, and Austin)
Sports of All Sorts produces, distributes, and sells high-quality skateboards. Its supply chain consists of three factories (located in Detroit, Los Angeles, and Austin) that produce skateboards. The Detroit and Los Angeles facilities can produce 350 skateboards per week, but the Austin plant is larger and can produce up to 700 skateboards per week. Skateboards must be shipped from the factories to one of four distribution centers, or DCS (located in Iowa, Maryland, Idaho, and Arkansas). Each distribution center can process (repackage, mark for sale, and ship) at most 500 skateboards per week. Shipping Costs ($ per skateboard) Factory/DCs A 5 6 Iowa Maryland Idaho Arkansas 1 Detroit 25.00 25.00 35.00 40.00 2 Los Angeles 35.00 45.00 35.00 42.50 Austin 40.00 40.00 42.50 32.50 Skateboards are then shipped from the distribution centers to retailers. Sports of All Sorts supplies three major U.S. retailers: Just Sports, Sports 'N Stuff, and The Sports Dude. The weekly demands are 200 skateboards at Just Sports, 500 skateboards at Sports 'N Stuff, and 650 skateboards at The Sports Dude. The following tables display the per-unit costs for shipping skateboards between the factories and DCs and for shipping between the DCs and the retailers. Retailers/DCs Shipping Costs ($ per skateboard) 4 6 Iowa Maryland Idaho Arkansas 8 Just Sports 30.00 20.00 35.00 27.50 19 Sports 'N Stuff 27.50 32.50 40.00 25.00 The Sports Dude 30.00 40.00 32.50 42.50
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