Stocking warehouses

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Stocking Warehouses: The Nicklaus Razor Blade Company plans to test market a new blade next month. The blades will be stocked in their three ware- houses in the following quantities. Warehouse A B C Stock (cartons) 50 50 50 Meanwhile, the carton quantities required by the distributors in the four test markets are as follows. Distributor D E F G Requirement 45 15 25 20 The unit costs (in dollars per carton) of shipping the blades from warehouses to distributors are given in the table below. DEFG A 8 10 6 3 B 9 15 8 6 C 5 12 5 7 (a) NRBC wishes to meet the distributor’s requirements at the minimum total transportation cost. Find the optimal plan. (b) Show the network diagram corresponding to the solution in (a). That is, label each of the arcs in the solution and verify that the flows are consistent with the given information.

Reference no: EM132282833

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