Business, 21.07.2020 16:01 evanwall91

A firm has 4 plants that produce widgets. Plants A, B, and C can each produce 100 widgets per day. Plant D can produce 50 widgets per day. Each day the widgets produced in the plants must be shipped to satisfy the demand of 3 customers. Customer 1 requires 75 units per day, customer 2 requires 100 units per day, and customer 3 requires 175 units per day. The shipping costs for each possible route are shown in the table below Shipping Costs per unit Plant Customer
1 2 3
A $25 $35 15
B $20 30 $40
C $40 35 $ 20
D $15 20 25
The firm needs to satisfy all demand each day, but would like to minimize the total costs What is the minimum daily shipping cost that the firm can achieve?
a. $6,725
b. $8,325
c. $7125
d. $7525
e. $7925

Answers: 3

Show answers

Answers

Answer from: harri26348

A Widgets Firm

Minimization of Shipping Costs to 3 Customers from 4 Locations:

Explanation:

a) Data and Calculations:

Shipping Costs per unit Plant Customer

c. $7125

Plants Customers

Production 1 2 3 Total

Demand units 75 units 100 units 175 units 350 units

A 100 units $25 $35 $15

B 100 units $20 $30 $40

C 100 units $40 $35 $20

D 50 units $15 $20 $25

To minimize shipping costs:

Satisfy Customer 1's 75 units from B = $20 x 75 = $1,500

Satisfy Customer 2's 25 units from B = $30 x 25 = 750

Satisfy Customer 2's 25 units from C = $35 x 25 = 875

Satisfy Customer 2's 50 units from D = $20 x 50 = 1,000

Satisfy Customer 3's 100 units from A = $15 x 100 = 1,500

Satisfy Customer 3's 75 units from C = $20 x 75 = 1,500

Daily minimum shipping cost = $7,125

Minimizing the shipping cost to a location is not considered in isolation. The other locations must be considered. For example, customer 1's shipping cost would have been minimized to $1,250 instead of $1,500 by shipping D's 50 units and B's 25 units. But, this would have increased the shipping cost to customer 2 by $500 from $2,625 to $3,125. Whereas, the company lost $250 shipping to customer 1, it gained $500 shipping to customer 2, thereby making a net gain of $250, instead of net loss of $250.

Answer from: Quest

How is this a question and how u need an answer for this

Answer from: Quest

the famous singer stefani joanne angelina germanotta is welly known as lady gaga

Other questions on the subject: Business

Business, 22.06.2019 12:50, 22iungj

Salaries are $4,500 per week for five working days and are paid weekly at the end of the day fridays. the end of the month falls on a thursday. the accountant for dayton company made the appropriate accrual adjustment and posted it to the ledger. the balance of salaries payable, as shown on the adjusted trial balance, will be a (assume that there was no beginning balance in the salaries payable account.)

Answers: 1

continue

Business, 22.06.2019 14:30, lilquanreem8051

Bridge building company estimates that it will incur $1,200,000 in overhead costs for the year. additionally, the company estimates 50,000 direct labor hours will be spent building custom walking bridges for the year at a total direct labor cost of $600,000. what is the predetermined overhead rate for bridge building company if direct labor costs are to be used as an allocation base?

Answers: 3

continue

Business, 22.06.2019 19:20, cathydaves

Bcorporation, a merchandising company, reported the following results for october: sales $ 490,000 cost of goods sold (all variable) $ 169,700 total variable selling expense $ 24,200 total fixed selling expense $ 21,700 total variable administrative expense $ 13,200 total fixed administrative expense $ 33,600 the contribution margin for october is:

Answers: 1

continue

Business, 23.06.2019 01:10, CarlsonB

1. alwaysrain irrigation, inc. would like to determine capacity requirements for the next four years. currently, two production lines are in place for making bronze and plastic sprinklers. three types of sprinklers are available in both bronze and plastic: 90-degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. management has forecast demand for the next four years as follows: both production lines can produce all the different types of nozzles. the bronze machines needed for the bronze sprinklers require two operators and can produce up to 12,000 sprinklers. the plastic injection molding machine needed for the plastic sprinklers requires four operators and can produce up to 200,000 sprinklers. three bronze machines and only one injection molding machine are available. what are the capacity requirements for the next four years? (assume that there is no learning.)

Answers: 1

continue

You know the right answer?

A firm has 4 plants that produce widgets. Plants A, B, and C can each produce 100 widgets per day. P...