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A toy manufacturer currently uses two ware house to supply three retail outlets A, B and C. It is considering the opening of a third ware house that will have a capacity of 500 units of backyard play sets per week. Two new locations are being considered for the new ware house, N1 and N2. The transportation cost for each unit from the new location N1 to stores A,B and C are $6, $8 and $7 respectively. The transportation cost for each unit from the unit from the new location N2 to stores A,B and C are $10, $6 and $4 respectively. The warehouse capacity, store demand and unit transportation cost for the current system are shown in the table below. Develop and solve LP models to determine the location of the new warehouse. Show the details of the two models below and attach a copy of the answer report for each mode.

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M992911

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