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Part a

ACE's four plants ship goods to 3 warehouses which in turn ship to 5 retailers
The shipping costs per unit are:

4 5 Product Capacity
Plant Salt Lake Dallas Cost/unit unit/week
1 LA 30 40 208 200
2 Kcity 25 45 214 300
3 Savannah 45 30 215 300

6 7 8
Warehouse Best Buy ElectroX Walmart Capacity (units/week)
4 Salt Lake 40 45 20 300
5 Dallas 15 50 40 500

Customer 100 50 150
Demand
per week

Determine production and shipping goals to minimize the costs.

Part b Suppose we have in addition, the following fixed costs per week:

Plant Fixed Cost ($/week) Warehouse Fixed Cost ($/week)
LA 8000 Salt Lake 4000
Kcity 9000 Dallas 5000
Savannah 9000

These fixed costs apply only if the plant or warehouse is used
Determine a new plan addressing shipping and fixed costs
as part of the minimum costs

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Solution Summary

Determine a new plan addressing shipping and fixed costs as part of the minimum costs.

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