A National Firm Has Beef Jerky Processing Facilities in Locations

question 46

Essay

A national firm has beef jerky processing facilities in Locations 1, 2, 3, and 4. They ship to central distributors (represented as A, B, C, and D) handling four regions of the country. The per-unit shipping costs between each possible combination of locations are shown in the following table.

The processing facility locations are capable of monthly production (in tons) as follows:
Location 1: 600
Location 2: 350
Location 3: 475
Location 4: 850
The central distributors have firm commitments for the following quantities:
Distributor A: 650
Distributor B: 725
Distributor C: 400
Distributor D: 500
What is the lowest-cost shipping arrangement that can be made between the plant locations and distributors and what is the annual shipping cost?

---

Definitions:

Predictability

The extent to which future events or behaviors can be forecasted based on current or past information.

Psychology

The scientific study of the human mind and its functions, especially those affecting behavior in a given context.

Mental Processes

Internal, covert activities of the mind, such as thinking, feeling, and remembering.

External Environment

All outside factors and influences that impact the operation and success of an entity, including economic, social, political, and technological factors.