.An international distribution company of containers has operated a warehouse in Manila to service customers between the Asian continent and the North American continent for the past four years. Liann Able, VP of logistics, calls the planning meeting to order and begins discussion on the transportation plans to respond to recent changes in unit costs due to cost adjustments within the different countries. The unit costs of shipping from each source warehouse to each destination site, the capacity (in thousands) of the warehouses, and the demand (in thousands) of the destination sites are given in the table.
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Question 4. What is the minimum total shipping cost in thousands that satisfies the requirements? (A) $11390 (B) $16190 (C) $10360 (D) $15360 (E) None of the above . |
Expert Answer
Solution :
Transportation Cost = 21*200 + 21*190 + 14*180 + 28*60 + 27*50 + 29*60 = 15480