Advantage of season changes in the united states

Reference no: EM13496048

MotoX
MotoX is a company that takes advantage of season changes in the United States to make profit from motorcycle sales. In the beginning of winter, they buy motorcycles from the Midwest then ship and sell them in California because of the nice weather where people ride all year long. As winter comes early this year, they are able to purchases motorcycles at bargain prices: 145 from Chicago, 73 from Kansas City, and 20 from Indianapolis. They have four stores in Hollywood, Irvine, San Francisco, and San Jose. The sales managers in these stores are seasoned veterans who have been in the business for a long time. So, their estimates on the demand are quite good. Vincent, the sales manager in Hollywood believes that they can sell 80 motorcycles. Cliff from the Irvine store looks at last year's sales and predicts a sales number of 70. Jon is a regional manager of the Northern California area and supervises the stores in this area. Because Northern California has more rain than Southern California, he estimates the sales numbers of San Francisco and San Jose stores as 30 and 50. The associated shipping costs per motorcycle are as follows:
a) Formulate the mathematical network model for this problem (hint: it is a transportation problem). Solve the problem.
b) How much is the total cost?
c) How many motorcycles are shipped to: San Jose from Chicago? San Francisco from Kansas City?
d) Looking at the result, where should they have bought lesser number of motorcycles? By how
many less?

Reference no: EM13496048

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