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Use This Information to Answer the Following Questions Shipping Cost/unit ($)

Question 25

Essay

Use this information to answer the following questions.
A company can ship its product from any of its three factories,F1,F2,and F3,to any of its retail outlets,R1,R2,and R3.The capacity,demand,and shipping cost information is provided as follows:
 Demand (units)  Capacity (units)  R1:300  F1:250  R2: 500F2:350 R3:200  F3:400 \begin{array}{ll}\text { Demand (units) } & \text { Capacity (units) } \\\hline \text { R1:300 } & \text { F1:250 } \\\text { R2: } 500 & F 2: 350 \\\text { R3:200 } & \text { F3:400 }\end{array}



Shipping Cost/unit ($)
R1R2R3 \begin{array}{lll}&&\mathrm{R} 1 & \mathrm{R} 2 & \mathrm{R} 3\end{array}
F1132 F2 342 F3 223 \begin{array}{llll}\mathrm{F} 1 & 1 & 3 & 2 \\ \text { F2 } & 3 & 4 & 2 \\ \text { F3 } & 2 & 2 & 3\end{array}


-Refer to the information above.The company wants to come up with an optimal shipping strategy to minimize its total shipping cost.Use Excel to formulate and solve this problem.

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