We Return to Your Exploits Coordinating Distribution for the Tubular

question 107

Essay

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 470 Gladiator boards per week, while Venice Beach orders 500 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 810 boards per week. What should you do

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Definitions:

Tax Purposes

For tax purposes indicates the considerations or implications for calculating and reporting taxes, differing from accounting or financial purposes and might involve specific treatments for expenses or revenues.

Financial Lease

A type of lease where the lessee assumes some of the risks and benefits of ownership of the leased asset.

Fully-Amortized

Describes a loan in which all payments will be made on time and in full over the life of the loan, resulting in the complete payoff of the loan amount and interest.

Insurance

A financial product that provides protection against potential future losses or damages.