Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Forbelt Corporation has one-year contract to provide motors for all refrigerators created by Ice Age Corporation. Ice Age manufactures the refrigerators at 4 locations around country:  Boston, Dallas, Los Angeles (LA), and St. Paul (SP). Plans call for the following number (in thousands) of refrigerators to be produced at each location:

Boston – 50K     Dallas – 70K     LA – 60K SP – 80K

Forbelt’s 3 plants are able of producing the motors. Plants and production capacities (in thousands) are:

Denver – 100k     Atlanta – 100     Chicago – 150

As of varying production and transportation costs, profit that Forbelt earns on each lot of 1000 units depends on which pant produced lot and which destination it was shipped to. Following table gives  accounting department estimates of profit per unit (shipments will be made in lots of 1000 units):

Shipped To

Produced At    Boston    Dallas    Los Angeles    St. Paul
Denver               7          11           8                  13
Atlanta              20         17          12                 10
Chicago             8           18          13                16

With profit maximization as the criterion, Forbelt’s management wishes to find out how many motors must be produced at each plant and how many motors must be shipped from each plant to each destination.

a) Develop a network representation of the model.

b) Find the optimal solution.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914937

Have any Question? 


Related Questions in Basic Finance

1 utilities are usually very highly leveraged how is it

1. Utilities are usually very highly leveraged. How is it that they are able to carry such high levels of debt? 2. How does demand for utilities differ from demand for other products or services? 3. For regulated utiliti ...

A model of a harbor is made on the length ratio of 3601

A model of a harbor is made on the length ratio of 360:1. Storm waves of 2 m amplitude and 8 m/s velocity occur on the breakwater of the prototype harbor. Significant variables are the length scale, velocity, and g, the ...

Identify general-purpose statements and communication

Identify general-purpose statements and communication objectives for several situations. Read the following situations and write a general-purpose statement and a specific communication objective-the results you want-for ...

1 what is the difference between a debt instrument and an

1. What is the difference between a debt instrument and an equity? 2. Define and briefly explain the following terms: a. Face value b. Coupon c. Coupon rate d. Current yield e. Maturity 3. Explain in which category of de ...

1 discuss how the planningcoordination and operation flow

1. Discuss how the planning/coordination and operation flow differs for MTO and MTS firms. 2. Compare and contrast the role of planning/coordination and operations in improving firm competitiveness. 3. Compare and contra ...

A 1000 bond is paying a coupon interest rate of 7 the

A $1,000 Bond is paying a coupon interest rate of 7%. The current Required Rate of Return in the market is 5%. If you were buying this Bond on the market today, would you expect to pay more than $1,000 for it (Premium) o ...

Calculate the total lift force on the arctic hut shown

Calculate the total lift force on the Arctic hut shown below as a function of the location of the opening. The lift force results from the difference between the inside pressure and the outside pressure. Assume potential ...

Gun manufacturer bloodbath amp beyond currently has a cash

Gun manufacturer Bloodbath & Beyond currently has a cash balance of $750,000. It projects that cash outflows of $390,000 a month. The company pays a fee of $500 every time it sells securities through its broker and the a ...

You buy a stock for 35 per share one year later you receive

You buy a stock for $35 per share. One year later you receive a dividend of $3.50 per share and sell the stock for $30 per share. What is your total rate of return on this investment? What is your capital gain or loss yi ...

1 compare and contrast the theories of absolute and

1. Compare and contrast the theories of absolute and comparative advantage. 2. How does the Heckscher-Ohlin (HO) theory build on the earlier work of absolute and comparative advantage? 3. The Leontief Paradox finds oppos ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen