5. The traffic manager for Superior Steel Company in Albany is trying to decide the cheapest way...
Question:
5. The traffic manager for Superior Steel Company in Albany is trying to decide the cheapest way to ship his product to customers in Wayword and Leftover. The demand is 5,000 at Wayword and 6,000 at Leftover. The drop charges are $50 at either Wayword or Leftover. The alternate routes and rates are shown here:
Origin Destination Via Weight Rate Albany Wayword Direct <10,000 $ 6/cwt.
Albany Wayword Direct >10,000 4/cwt.
AIbany Wayword Leftover Any quantity 8/cwt.
Albany Leftover Direct <8,000 5/cwt.
Albany Leftover Direct >8,000 4/cwt.
Albany Leftover Wayword <5,000 10/cwt.
Albany Leftover Wayword >5,000 7/cwt.
Leftover Wayword Direct Any quantity 4/cwt.
Wayword Leftover Direct <5,000 4/cwt.
Wayword Leftover Direct >5,000 2/cwt.
What is the lowest cost shipping policy for Superior Steel Company? What is the total cost of this policy?
Step by Step Answer:
Manufacturing Planning And Control For Supply Chain Management
ISBN: 9780073377827
6th Edition
Authors: F. Robert Jacobs, William Berry, David Clay Whybark, Thomas Vollmann