Question: The Top Speed Bicycle Company manufactures and markets a line of 10-speed bicycles nationwide. The firm has final assembly plants in two cities where labor costs are low, New Orleans and Omaha. Its three major warehouses are located near the large market areas of New York, Chicago, and Los Angeles.

The sales requirements for next year at the New York warehouse are 10,000 bicycles, at the Chicago warehouse 8,000 bicycles, and at the Los Angeles warehouse 15,000 bicycles. The factory capacity at each location is limited. New Orleans can assemble and ship 20,000 bicycles; the Omaha plant can produce 15,000 bicycles per year. The cost of shipping one bicycle from each factory to each warehouse differs, and these unit shipping costs are as follows:

The company wishes to develop a shipping schedule that will minimize its total transportation costs. What would you advise?

Price: $2.99

Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document