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This question is to be answered using EXCEL Spreadsheets Stocking Warehouses: Nicklaus Razor Blade (NRB) Company plans to test market a new blade next month.
This question is to be answered using EXCEL Spreadsheets
Stocking Warehouses: Nicklaus Razor Blade (NRB) Company plans to test market a new blade next month. The blades will be stocked in their three ware- houses in the following quantities. Warehouse A Stock (cartons) 50 B 50 c 50 The carton quantities required by the distributors in the four test markets are as follows. Distributor Requirement 45 15 F 25 C, 20 The unit costs (in dollars per carton) Of shipping the blades from warehouses to distributors are given in the table below. B c D 8 9 5 E 10 15 12 6 8 5 C, 6 7 (a) If the NRB Company wishes to meet the distributor's requirements at the minimum total transportation cost, what is the optimal distribution plan and its cost? (b) Suppose that the policy at the NRB Company is that each distributor must be serviced by a single warehouse. What is the optimal distribution plan under this policy? (c) By how much (in percentage terms) does the single-warehouse policy inflate distribution cost?
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