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One of your duties at the K.J. Keintz Company is to schedule shipments each month from the
companys three factories to its five warehouses, which are scattered at various sites throughout
the country. Table 2.1 lists the supplies of tomato ketchup at the three plants and the needs of the
five warehouses, and Table 2.2 shows the shipping costs.
a. Develop a shipping schedule that will minimize the transportation costs.
b. If the Keintz Company follows the shipping schedule youve developed, what will be the total
cost for shipping tomato ketchup next month?
c. How are your answers to (a) and (b) affected if the demand at warehouse E is reduced to 8
cases from 18?
d. How are your answers to (a) and (b) affected if it becomes impossible to ship from plant C to
warehouse E?
e. How are your answers to (a) and (b) affected if the cost to ship from plant C to warehouse H
drops to $5/case?
Table 2.1 Supplies at the Plants and Needs of the Warehouses
Plant
Supply, Cases
Warehouse
Demand, Cases
A
20
D
10
B
25
E
18
C
15
F
12
G
12
H
8
Table 2.2 Shipping Costs from Plants to Warehouses
Transportation Cost, $/Case
From Plant A
From Plant B
From Plant C
To warehouse D
10
9
11
To warehouse E
7
7
5
To warehouse F
11
11
8
To warehouse G
6
7
8
To warehouse H
6
6
8
Plant
Supply, Cases
Warehouse
Demand, Cases
A
20
D
10
B
25
E
18
C
15
F
12
G
12
H
8

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One of your duties at the K.J. Keintz Company is to schedule shipmen.pdf

  • 1. One of your duties at the K.J. Keintz Company is to schedule shipments each month from the companys three factories to its five warehouses, which are scattered at various sites throughout the country. Table 2.1 lists the supplies of tomato ketchup at the three plants and the needs of the five warehouses, and Table 2.2 shows the shipping costs. a. Develop a shipping schedule that will minimize the transportation costs. b. If the Keintz Company follows the shipping schedule youve developed, what will be the total cost for shipping tomato ketchup next month? c. How are your answers to (a) and (b) affected if the demand at warehouse E is reduced to 8 cases from 18? d. How are your answers to (a) and (b) affected if it becomes impossible to ship from plant C to warehouse E? e. How are your answers to (a) and (b) affected if the cost to ship from plant C to warehouse H drops to $5/case? Table 2.1 Supplies at the Plants and Needs of the Warehouses Plant Supply, Cases Warehouse Demand, Cases A 20 D 10 B 25 E 18 C 15 F 12 G 12
  • 2. H 8 Table 2.2 Shipping Costs from Plants to Warehouses Transportation Cost, $/Case From Plant A From Plant B From Plant C To warehouse D 10 9 11 To warehouse E 7 7 5 To warehouse F 11 11 8 To warehouse G 6 7 8 To warehouse H 6 6 8 Plant