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A Business Application: Minimum Shipment Cost An automobile company has two factories. One factory has 400 cars (of a certain model) in stock and the other factory has 300 cars (of the model) in stock.

Two customers order this car model. The first customer needs 200 cars, and the second customer needs 300 cars.

The cost of shipping cars from the two factories to the customers is shown in table

 

Customer 1

Customer 2

Facotry 1

$30

$25

Facotry 2

$36

$30

How should the company ship the cars in order to minimize the shipping cost?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92777138

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