Question
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 |
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