1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
bearhunter [10]
3 years ago
8

A firm has 4 plants that produce widgets. Plants A, B, and C can each produce 100 widgets per day. Plant D can produce 50 widget

s per day. Each day the widgets produced in the plants must be shipped to satisfy the demand of 3 customers. Customer 1 requires 75 units per day, customer 2 requires 100 units per day, and customer 3 requires 175 units per day. The shipping costs for each possible route are shown in the table below
Shipping Costs per unit Plant Customer
1 2 3
A $25 $35 15
B $20 30 $40
C $40 35 $ 20
D $15 20 25
The firm needs to satisfy all demand each day, but would like to minimize the total costs What is the minimum daily shipping cost that the firm can achieve?
a. $6,725
b. $8,325
c. $7125
d. $7525
e. $7925
Business
1 answer:
polet [3.4K]3 years ago
7 0

Answer:

A Widgets Firm

Minimization of Shipping Costs to 3 Customers from 4 Locations:

Explanation:

a) Data and Calculations:

Shipping Costs per unit Plant Customer

c. $7125

Plants                                Customers

     Production       1                       2                      3                 Total

Demand units        75 units       100 units          175 units    350 units

A       100 units    $25                $35                  $15

B       100 units    $20                $30                 $40

C      100 units    $40                 $35                 $20

D       50 units     $15                 $20                 $25

To minimize shipping costs:

Satisfy Customer 1's 75 units from B = $20 x 75 =    $1,500

Satisfy Customer 2's 25 units from B = $30 x 25 =       750

Satisfy Customer 2's 25 units from C = $35 x 25 =      875

Satisfy Customer 2's 50 units from D = $20 x 50 =    1,000

Satisfy Customer 3's 100 units from A = $15 x 100 =  1,500

Satisfy Customer 3's 75 units from C = $20 x 75 =    1,500

Daily minimum shipping cost  =                                 $7,125

Minimizing the shipping cost to a location is not considered in isolation. The other locations must be considered.  For example, customer 1's shipping cost would have been minimized to $1,250 instead of $1,500 by shipping D's 50 units and B's 25 units.  But, this would have increased the shipping cost to customer 2 by $500 from $2,625 to $3,125.  Whereas, the company lost $250 shipping to customer 1, it gained $500 shipping to customer 2, thereby making a net gain of $250, instead of net loss of $250.

You might be interested in
The primary purpose of parks and natural areas is for recreation and human use. true or false
Elena L [17]
<span>True. Parks and natural areas provide an avenue for humans to conduct adventure programs and activities. with proper stewardship and preservation, parks and natural areas provide a conducive place for outdoor recreation and education programs that may lead to increased health, wellness, and community participation.</span>
5 0
3 years ago
Porque alguien podría querer poner una "bandera Roja" en su propio informe crediticio?
castortr0y [4]

Answer:

I don't know what is meaning

Explanation:

sry

3 0
2 years ago
Changes in the quality of a good a. present a problem in the construction of the consumer price index, and that problem is somet
Agata [3.3K]

Answer:

D

Explanation:

The consumer price index measures the changes in price of a basket of good. It is used to measure inflation. Because the price of price of used cars and trucks in US has increased , the CPI would increase

CPI = (cost of basket of goods in current period / cost of basket of goods in base period) x 100

Changes in the quality of good is not included in the calculation of CPI. This is one of its drawbacks

8 0
3 years ago
If the commercial is TRUE that every additional bite of food tastes as good as the first, the marginal utility from consuming mo
zlopas [31]

Answer: If the commercial is TRUE that every additional bite of food tastes as good as the first, the marginal utility from consuming more of the advertised product must be CONSTANT. Option D.

Explanation:

Marginal utility is the additional satisfaction an individual gets, from consuming an additional unit of a product or service.

Therefore, in the scenario given above, if every additional bite of food tastes as good as the first, then the additional satisfaction is just as good as the preceding satisfaction. We can therefore say that the marginal utility gotten from consuming that product is constant.

4 0
3 years ago
Do you think percentage gains
Anni [7]
I think more varied if you added additional mutual funds you would have a more diverse portfolio.
8 0
3 years ago
Read 2 more answers
Other questions:
  • What are the factors used to measure the "multinationality" of a company? Multiple Choice
    5·1 answer
  • 13. Describe at least three other investments you want to make with your income either now or someday in the future. Explain why
    12·2 answers
  • For performance evaluation purposes, the fixed costs of a service department should be charged to operating departments using: M
    11·1 answer
  • In order to "not carry out the desire of the flesh," paul urges the galatians to
    11·2 answers
  • 1. Wylie has been offered the choice of receiving $5,000 today or an agreed-upon amount in 1 year. While negotiating the future
    14·1 answer
  • Assume that market and book values are equal for current assets, current liabilities, and debt and other long-term liabilities.
    5·1 answer
  • NoMoreKidSongs Corp. paid a dividend last quarter of $6.18. It is expected to grow at 3% over the next year, 8%, the following y
    11·1 answer
  • You are an engineering technologist employed by H. L. Winman and Associates, and you are engaged in a lake-level measurement pro
    10·1 answer
  • On January 1, 2019, Woodstock, Inc. purchased a machine costing $30,900. Woodstock also paid $1,700 for transportation and insta
    8·1 answer
  • When merchandise is returned for a refund or for credit to be applied to other purchases, the situation is called a(n)
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!