Juice manufactures different juices made entirely of various exotic nuts. Their primary market is China and they operate 3 plants located in Ethiopia, Tanzania and Nigeria. You have been asked to help them determine where to manufacture the two newest juices they offer, Gingko Nut and Kola Nut. Each plant has a different variable cost structure and capacity for manufacturing the different juices. Also each juice has an expected demand. Cost/unit Gingko Kola Ethiopia ¥21.00 ¥22.50 Tanzania ¥22.50 ¥24.50 Nigeria ¥23.00 ¥25.50 Capacity Units/month Ethiopia 425 Tanzania 400 Nigeria 750 Demand Units/month Gingko 550 Kola 450 same exampe is used but in this case each plant has a different fixed and variable cost structur and cpacity for manufacturing the differnt Juices. the fixed cost only applies if the plant produces any juice Capacity Unit-Month Fixed cost-Month Ethiopia 425 1500 Tanzania 400 2000 Nigeria 750 3000 How much of each juice should be made at each plant in order to minimize total cost while meeting demand and adhering to plant capacity?
nJuicy Juice manufactures different juices made entirely of various exotic nuts. Their primary market is China and they operate 3 plants located in Ethiopia, Tanzania and Nigeria. You have been asked to help them determine where to manufacture the two newest juices they offer, Gingko Nut and Kola Nut. Each plant has a different variable cost structure and capacity for manufacturing the different juices. Also each juice has an expected demand.
Cost/unit |
Gingko |
Kola |
Ethiopia |
¥21.00 |
¥22.50 |
Tanzania |
¥22.50 |
¥24.50 |
Nigeria |
¥23.00 |
¥25.50 |
Capacity |
Units/month |
Ethiopia |
425 |
Tanzania |
400 |
Nigeria |
750 |
Demand |
Units/month |
Gingko |
550 |
Kola |
450 |
same exampe is used but in this case each plant has a different fixed and variable cost structur and cpacity for manufacturing the differnt Juices. the fixed cost only applies if the plant produces any juice
Capacity Unit-Month Fixed cost-Month
Ethiopia 425 1500
Tanzania 400 2000
Nigeria 750 3000
How much of each juice should be made at each plant in order to minimize total cost while meeting demand and adhering to plant capacity?
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