Steinwelt Piano Manufactures Uprights and Consoles in Two Plants, Plant

question 37

Essay

Steinwelt Piano manufactures uprights and consoles in two plants, plant I and plant II. The output of plant I is at most 180 pianos/month, whereas the output of plant II is at most 150 pianos/month. These pianos are shipped to three warehouses that serve as distribution centers for the company. To fill current and projected orders, warehouse A requires a minimum of 120 pianos/month, warehouse B requires at least 90 pianos/month, and warehouse C requires at least 120 pianos/month. The shipping cost of each piano from plant I to warehouse A, warehouse B, and warehouse C is $60, $60, and $80, respectively, and the shipping cost of each piano from plant II to warehouse A, warehouse B, and warehouse C is $80, $70, and $50, respectively.
Use the method of this section to determine the shipping schedule that will enable Steinwelt to meet the warehouses' requirements while keeping the shipping costs to a minimum.
__________ pianos from plant I to warehouse A
__________ pianos from plant I to warehouse B
__________ pianos from plant I to warehouse C
__________ pianos from plant II to warehouse A
__________ pianos from plant II to warehouse B
__________ pianos from plant II to warehouse C

---

Definitions:

APS

Acronym for Average Propensity to Save, which is the ratio of total savings to total income in an economy, indicating how much people save on average per unit of income.

Investment

Assigning financial resources in the hope of creating revenue or gains.

GDP

Stands for Gross Domestic Product, which is the total value of all goods and services produced within a country's borders in a specific time period.

Accounting Firm

A business that provides a wide range of accounting services such as audit, bookkeeping, tax preparation, and consulting to individuals and organizations.