A Soft Drink Manufacturing Company Has 3 Factories Set Up

question 28

Essay

A soft drink manufacturing company has 3 factories set up one in each of the three cities - Orland, Tampa, and Port St. Lucie and it supplies the produced soft drink bottles to 3 warehouses located in the city of Miami. The associated per-unit transportation cost table is provided below:

The factory at Orlando has a capacity of 15,000 units.
The factory at Tampa has a capacity of 18,000 units.
The factory at Port St. Lucie has a capacity of 8,000 units.
The requirements of the warehouses are:
a. Determine how much of the company's production should be shipped from each factory to each warehouse in order to minimize the total transportation cost? b. Find an alternative optimal solution for this transportation problem? Hint: Use the procedure described in section 8.7.

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Definitions:

Par Preferred Stock

Preferred shares of a company's stock issued at a specific nominal value and with fixed dividend payments.

Cash

Liquid funds available for transaction or investment purposes.

Treasury Stock

Shares that were issued and later reacquired by the issuing corporation, which do not confer voting rights or pay dividends.

Purchase Price

The amount of money paid to buy a good, service, or asset. It encompasses all forms of considerations including cash, assets, assumed liabilities, and other financial terms involved in a transaction.