The Integrated Products Corporation (IPC) is developing a monthly shipping plan for its computer systems. The following
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Question:
The Integrated Products Corporation (IPC) is developing a monthly shipping plan for its computer systems. The following information affects this plan:
Plant | Monthly Capacity | Warehouse | Monthly Requirements |
Atlanta | 1 600 | Chicago | 500 |
El Paso | 2 400 | Dallas | 1 000 |
Denver | 800 | ||
New York | 1 200 | ||
San Jose | 500 |
Plant | Warehouse | Shipping Cost ($/Computer) | Plant | Warehouse | Shipping Cost ($/Computer) |
Atlanta | Chicago | 45 | El Paso | Chicago | 60 |
Dallas | 50 | Dallas | 40 | ||
Denver | 70 | Denver | 45 | ||
New York | 55 | New York | 105 | ||
San Jose | 100 | San Jose | 50 |
a) What shipping plan will minimize monthly shipping costs? 12 marks
b) What will be the monthly shipping costs of the optimal shipping plan from Part a? 8 marks
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