Shipping Grain: Sadeghian Cereal Company is in the business of buying and selling grains. An importa
Question: Shipping Grain: Sadeghian Cereal Company is in the business of buying and selling grains. An important aspect of the company's business is arranging for the purchased grain to be shipped to customers. If the company can keep freight costs low, its profitability will be improved. Currently, the company has purchased three railcars of grain at Peoria, seven railcars at Iowa City, and six railcars at Lawrence. Fourteen carloads of grain have been sold. The locations and the amount sold at each location are as follows:
Location | Railcar Loads |
Augusta | 2 |
Gainsville | 4 |
Oxford | 3 |
Columbia | 5 |
All shipments must be routed through either Louisville or Dayton. Shown below are the shipping costs per railcar from the origins to Louisville and Dayton and the cost per railcar to ship from Louisville and Dayton to the destinations.
Louisville | Dayton | |||||
Peoria | 1800 | 1500 | ||||
Iowa City | 1400 | 1900 | ||||
Lawrence | 1200 | 1600 | ||||
Augusta | Gainesville | Oxford | Columbia | |||
Louisville | 4400 | 3600 | 3300 | 3200 | ||
Dayton | 4200 | 3500 | 3100 | 2700 | ||
Requirement: Determine the shipping schedule that will minimize the freight costs necessary to satisfy demand.
Deliverable: Word Document
