Determine marc optimal shipping quantities Business Management
Marc’s construction firm currently has three projects in progress. Each requires a specific supply of gravel. There are three gravel pits available to provide for Marc’s needs, but shipping cost differ from location to location. The table below summarizes the transportation costs:
Gravel Pit | Project 1 | Project 2 | Project 3 | Supply (tons) |
A | $9 | $8 | $7 | 3,000 |
B | $7 | $11 | $6 | 4,000 |
C | $4 | $3 | $12 | 6,000 |
Project Demand (tons) | 2,500 | 3,750 | 4,850 |