Question
The ACME Plant buys two components from its two suppliers to assemble the end product sold to its customer. The distances are provided in the
The ACME Plant buys two components from its two suppliers to assemble the end product sold to its customer. The distances are provided in the following graph. The component 1 from supplier 1 weighs 150 lb each, while the component 2 from supplier 2 weighs 300 lb each. The weight of the end product is the sum of the weights of the two components. The customer demands 10,000 units of the end product annually. The average shipment size from the supplier 1 to the plant is 1,500 lb, the average shipment size from the supplier 2 is 3,000 lb, while the average shipment size from the plant to the customer is 9,000 lb.
Based on the following table, derive the annual transportation costs from supplier 1 to the plant, from supplier 2 to the plant, and from the plant to the customer, respectively. Show the calculation.
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