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We Return to Your Exploits Coordinating Distribution for the Tubular

question 114

Multiple Choice

We return to your exploits coordinating distribution for the Tubular Ride Boogie Board Company. You will recall that the company has manufacturing plants in Tucson, Arizona and Toronto, Ontario, and you have been given the job of coordinating distribution of their latest model, the Gladiator, to their outlets in Honolulu and Venice Beach. The Tucson plant can manufacture up to 620 boards per week, while the Toronto plant, beset by labor disputes, can produce no more than 410 Gladiator boards per week. The outlet in Honolulu orders 480 Gladiator boards per week, while Venice Beach orders 510 boards per week. Transportation costs are as follows: Tucson to Honolulu: $10 per board; Tucson to Venice Beach: $5 per board; Toronto to Honolulu: $20 per board; Toronto to Venice Beach: $10 per board. Your manager has said that you are to be sure to fill all orders and ship the boogie boards at a minimum total transportation cost. But you have just been notified that workers at the Toronto boogie board plant have gone on strike, resulting in a total work stoppage. You are to come up with a revised delivery schedule by tomorrow with the understanding that the Tucson plant can push production to a maximum of 880 boards per week. Can you devise a delivery schedule with these accommodations in mind ?

Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, essentially measuring the net benefit to producers from selling at a market price above their minimum acceptable price.

Government Policy

The actions or inactions taken by the governing body to address public issues, which can influence economic conditions, social welfare, and the regulatory environment.

Producer Surplus

The differentiation between the selling price sellers are willing to accept and the price they eventually get.

Government Policy

Strategies and measures adopted by a government to guide its actions in the pursuit of specific goals and objectives.