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A major coffee supplier has warehouses in Seattle and San Jose. The coffee supplier receives orders...

A major coffee supplier has warehouses in Seattle and San Jose. The coffee supplier receives orders from coffee retailers in Salt Lake City and Reno. The retailer in Salt Lake City needs 550 pounds of coffee, and the retailer in Reno needs 300 pounds of coffee. The Seattle warehouse has 800 pounds available, and the warehouse in San Jose has 650 pounds available. The cost of shipping from Seattle to Salt Lake City is $2.50 per pound, from Seattle to Reno $ 3 per pound, from San Jose to Salt Lake City $4 per pound, and from San Jose to Reno $2 per pound. Find the number of pounds to be shipped from each warehouse to each retailer to minimize the cost.

Solutions

Expert Solution

The facts are as under:

1. The Seattle warehouse has 800 pounds of coffee available.

2. The warehouse in San Jose has 650 pounds of coffee available.

3. The retailer in Salt Lake City needs 550 pounds of coffee.

4. The retailer in Reno needs 300 pounds of coffee.

5. The cost of shipping coffee from Seattle to Salt Lake City is $2.50 per pound.

6. The cost of shipping coffee from San Jose to Salt Lake City $ 4 per pound.

7. The cost of shipping coffee from Seattle to Reno is $ 3 per pound.

8. The cost of shipping coffee from San Jose to Reno is $ 2 per pound.

It is apparent that the cost of shipping coffee from Seattle to Salt Lake City is lower than the cost of shipping coffee from San Jose to Salt Lake City and since adequate quantity of coffee is available at Seattle to fulfill the Salt Lake City retailer’s requirement , hence 550 pounds of coffee should be shipped from Seattle to Salt Lake City.

It is also apparent that the cost of shipping coffee from San Jose to Reno is lower than the cost of shipping coffee from Seattle to Reno and since adequate quantity of coffee is available at San Jose to fulfill the Reno retailer’s requirement , hence 300 pounds of coffee should be shipped from San Jose to Reno..

milcah answered 1 year ago
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