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One of the main products of the Fairway Woods Company is custom-made golf clubs. The clubs are manufactured at three plants (Denver, Colorado; Phoenix, Arizona; and Dallas, Texas) and are then shipped by truck to five distribution warehouses in Sacramento, California; Salt Lake City, Utah; Albuquerque, New Mexico; Chicago, Illinois; and New York City, New York. Because shipping costs are a major expense, management is investigating a way to reduce them. For the upcoming golf season, an estimate has been created as to the total output needed from each manufacturing plant and how much each warehouse will require to satisfy its customers. The CIO from Fairway Woods Company has created a spreadsheet for you of the shipping costs from each manufacturing plant to each warehouse as a baseline analysis.

Operation Management, Management Studies

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