A Company Supplies Goods to Three Customers, Each of Whom

question 56

Essay

A company supplies goods to three customers, each of whom requires 50 units. The company has two warehouses. In Warehouse 1, 75 units are available, and in Warehouse 2, 55 units are available. The costs of shipping one unit from each warehouse to each customer are shown in the table below. There is a penalty for each unsatisfied customer unit of demand - with customer 1, a penalty cost of $100 is incurred; with customer 2, $90; and with customer 3, $115.
-Determine how to minimize the sum of shortage and shipping costs.

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Definitions:

Bearish

A term used in investing to describe the belief that a market, asset, or economy is on a downward trajectory.

Elliott Wave Theory

Elliott Wave Theory is a technical analysis methodology that proposes financial market prices unfold in specific patterns, often called waves, which are driven by the psychology of market participants.

Primary Bull Trend

A market phase characterized by rising stock prices, investor optimism, and generally favorable economic conditions over an extended period.

Buy Signal

An indicator or analysis result suggesting that it is potentially a good time to purchase a particular security or investment.