Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Moore & Harman Company is in the business of buying and selling grain. An important aspect of the company's business is arranging for the

The Moore & Harman Company is in the business of buying and selling grain. An important aspect of the company's business is arranging for the purchased grain to be shipped to customers. If the company can keep freight costs low, profitability will improve.

The company recently purchased five rail cars of grain at Muncie, Indiana; six rail cars at Brazil, Indiana; and three rail cars at Xenia, Ohio. Twelve carloads of grain have been sold. The locations and the amount sold at each location are as follows:

Location Number of Rail Car Loads
Macon, GA 4
Greenwood, SC 3
Concord, SC 2
Chatham, NC 3

All shipments must be routed through either Louisville or Cincinnati. Shown are the shipping costs per bushel (in cents) from the origins to Louisville and Cincinnati and the costs per bushel to ship from Louisville and Cincinnati to the destinations. A rail car holds 3,200 bushels of grain.

To
From Louisville Cincinnati
Muncie 8 6
Brazil 3 8
Xenia 9 3
To
From Macon Greenwood Concord Chatham
Louisville 44 34 34 32
Cincinnati 57 35 28 24

(a)

Determine a shipping schedule that will minimize the freight costs necessary to satisfy demand. Enter the values that complete the shipping schedule.

To
From Louisville Cincinnati
Muncie
Brazil
Xenia
To
From Macon Greenwood Concord Chatham
Louisville
Cincinnati

(b)

Which (if any) rail cars of grain must be held at the origin until buyers can be found? Enter the number of cars at each starting location that must be held.

To
Location Number of Cars
Muncie
Brazil
Xenia

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Successful Time Management

Authors: Patrick Forsyth

Chinese 1st Edition

7508679814, 978-7508679815

More Books

Students also viewed these General Management questions

Question

9. Describe the characteristics of power.

Answered: 1 week ago