Use This Information to Answer the Following Questions The Company Wants to Come Up with an Optimal Shipping

question 39

Essay

Use this information to answer the following questions.
A company can ship its product from any of its three factories,F1,F2,and F3,to any of its retail outlets,R1,R2,and R3.The capacity,demand,and shipping cost information is provided as follows:
$\begin{array}{ll}\text { Demand (units) } & \text { Capacity (units) } \\\text { R1:300 } & \text { F1:250 } \\\text { R2: } 500 & \text { F2: } 350 \\\text { R3:200 } & \text { F3:400 }\end{array}$

$\begin{array}{l}\text { Shipping Cost/unit (\$) }\\\begin{array}{lll}&\mathrm{R} 1 & \mathrm{R} 2& \mathrm{R} 3 \\F1&1&3&2\\F2&3 & 4 & 2 \\F3&2 & 2 & 3\end{array}\end{array}$

The company wants to come up with an optimal shipping strategy that will allow it to minimize its total shipping cost.

-Use the Sensitivity Report to answer the following questions:
a.Will any of the retail outlets experience any shortages in meeting their demand requirements if we implement the optimal solution?
b.Will any of the factories have any remaining quantities of the product if we implement the optimal solution?
c.What is the total minimal shipping cost?

---

Definitions:

International Laws

Laws agreed on by nations; these laws are binding on nations and supersede their national laws.

Supersede

To replace or displace something in favor of something more recent or more effective.

Supreme Leader

A title often used to describe the highest-ranking individual in certain governments or organizations, possessing ultimate authority over decisions and policies.

Socialist Economic System

A socio-economic structure where production and distribution of goods are controlled by the state, aiming for equal wealth distribution.