foods Distribution Cost Wal-Mart Stores, Inc., has food distribution centers
in Monroe, Georgia, and Shelbyville, Tennessee, and Wal-Mart Supercenters in Scottsboro, Alabama, and Calhoun, Georgia. (Source: www.walnmrt.com.) Suppose that the Monroe distribution center must ship at least 400 cases of potato chips weekly and the Shelbyville distribution center must ship at least 200 cases of potato chips weekly.* If the Scottsboro store requires at least 300 cases of potato chips weekly and the Calhoun store requires at least 300 cases of potato chips weekly, what shipment plan will minimize the distribution cost?
Estimated Distribution Cost per Case
Monroe | Shelbyville | |
Calhoun | $0.39 | $0.50 |
Scottsboro | $0.65 | $0.32 |
^Distribution costs and amounts are hypothetical. |
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