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12 a soft drink manufacturer has recently begun

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12. A soft drink manufacturer has recently begun negotiations with brokers in areas where it intendsto distribute new products. Before making final agreements, however, the firm wants to determineshipping routes and costs. The firm has three plants with capacities as follows:PlantCapacity(cases per week)Metro40,000Ridge30,000Colby25,000The estimated shipping costs per case for the various routes are:WarehouseDemand(cases per week)RS124,000RS222,000RS323,000RS416,000RS510,000TOFromRS1RS2RS3RS4Metro.80.75.60.70Ridge.75.80.85.70Colby.70.75.70.80Determine the optimal shipping plan that will minimize total shipping costs under theseconditions:a. Route Ridge-RS4 is unacceptable.b. All routes are acceptable.c. What is the additional cost of the Ridge-RS4 route not being acceptable?RS5.90.85.80Stevenson, William J., and Ceyhun Ozgur.Introductionto Management Science with Spreadsheets.New York: McGraw-Hill, 2006.SELECTEDBIBLIOGRAPHYAND FURTHERREADING
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