A stockout rate of R12/unit applies for the short supply of products to the customers. Assist the company to find the shipment plan that will allow them to maximise profits.
A stockout rate of R12/unit applies for the short supply of products to the customers. Assist the company to find the shipment plan that will allow them to maximise profits.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![A company manufactures a type of product in three different
production plants: P1, P2 and P3. Each of these production plants
can produce up to 1570 units per month. The company supplies four
customers who require each 1000, 1200, 1500 and 1000 units per
month. The company makes a gross profit of R110/unit (excluding
transport cost).
The transportation rates (Rand/unit) from each production plant to
each customer are displayed below:
ETTTI
Customer 3
25
Customer 1
Customer 2
Customer 4
Plant 1
30
10
20
30
15
Plant 2
15
25
10
Plant 3
20
30
20
A stockout rate of R12/unit applies for the short supply of products to
the customers. Assist the company to find the shipment plan that will
allow them to maximise profits.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff5ebd31d-b2a2-4205-af19-c15abddfc92e%2Fd453c93a-8f38-4792-a32b-d5482f50cd9f%2Fvcmjnf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A company manufactures a type of product in three different
production plants: P1, P2 and P3. Each of these production plants
can produce up to 1570 units per month. The company supplies four
customers who require each 1000, 1200, 1500 and 1000 units per
month. The company makes a gross profit of R110/unit (excluding
transport cost).
The transportation rates (Rand/unit) from each production plant to
each customer are displayed below:
ETTTI
Customer 3
25
Customer 1
Customer 2
Customer 4
Plant 1
30
10
20
30
15
Plant 2
15
25
10
Plant 3
20
30
20
A stockout rate of R12/unit applies for the short supply of products to
the customers. Assist the company to find the shipment plan that will
allow them to maximise profits.
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