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The distance between A and B is 150 miles. If the distance from A to Y is X miles, then the distance from B to
The distance between A and B is 150 miles. If the distance from A to Y is X miles, then the distance from B to Y is (150 - X) miles. Assume:
-A is the factory and B is a distribution center
-Cost at A is $200 and cost from B is $200 plus TL transportation from A to B
-TL transportation and inventory-carrying costs are $20 per unit
-Transportation costs from either A or B are $0.20 per unit per mile.
Decide when to distribute direct from factory, and from where to ship from the distribution center.
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