Answered

At Westonci.ca, we make it easy for you to get the answers you need from a community of knowledgeable individuals. Join our platform to get reliable answers to your questions from a knowledgeable community of experts. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

On the same day that the sales department at Duffin House received an order for 500 packages from the OHaganBooks Texas headquarters, it received an additional order for 150 packages from FantasyBooks, based in California. Duffin House has warehouses in New York and Illinois. The New York warehouse has 500 packages in stock, but the Illinois warehouse is closing down and has only 250 packages in stock. Shipping costs per package of books are as follows: New York to Texas: $20; New York to California: $50; Illinois to Texas: $30; Illinois to California: $40. What is the lowest total shipping cost for which Duffin House can fill the orders

Sagot :

anthougo

Answer:

Duffin House

The lowest total shipping cost for which Duffin House can fill the orders is:

= $16,000.

Explanation:

a) Data and Calculations:

Orders received from OHaganBooks, Texas = 500 packages

Orders received from FantasyBooks, California = 150 packages

No. of packages in stock at New York Warehouse = 500

No. of packages in stock at Illinois Warehouse = 250

Shipping cost:

New York to Texas: $20;

New York to California: $50;

Illinois to Texas: $30;

Illinois to California: $40

Lowest shipping cost arrangement:

500 packages from New York to Texas at $20 = $10,000

150 packages from Illinois to California at $40 = $6,000

Total shipping cost = $16,000

Other shipping cost arrangement:

150 packages from New York to California at $50 = $7,500

350 packages from New York to Texas at $20 = $7,000

150 packages from Illinois to Texas at $30 = $4,500

Total shipping cost under this arrangement = $19,000

b) The key in making this shipping arrangement is to identify the lowest shipping cost per package.  The order that attracts this shipping cost is taken first.  Then identify the next lowest shipping cost that is feasible and have the order fulfilled accordingly.

We hope this was helpful. Please come back whenever you need more information or answers to your queries. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.