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The CoolAire Company manufactures air conditioners that are sold to five different retail customers across the United States. The company is evaluating its manufacturing and
The CoolAire Company manufactures air conditioners that are sold to five different retail customers across the United States. The company is evaluating its manufacturing and logistics strategy to ensure that it is operating in the most efficient manner possible. The company can produce air conditioners at six plants across the country and stock these units in any of four different warehouses. The cost of manufacturing and shipping a unit between each plant and warehouse is summarized in the first table on the spreadsheet, along with the monthly capacity and fixed cost of operating each plant.
Similarly, the perunit cost of shipping units from each warehouse to each customer is given in the second table, along with the monthly fixed cost of operating each warehouse. The monthly demand from each customer is summarized in the last row.
CoolAire would like to determine which plants and warehouses it should operate to meet demand in the most costeffective manner.
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