Question

You have one supplier shipping a material to three facilities. Each has warehousing capabilities.   Determine optimal size and frequency of shipments to each location. Show results and summary page.

Inputs:	Cost of Capitol	12%	Annual as % of Material Cost
	Material Cost	$2.00	per lb
Facility	Location	Warehousing Costs (per lb)	5000 lb LTL Freight Cost (per lb from Chicago)	Full Truck Freight Cost (per lb from Chicago)	Annual Volume (lb)
Supplier	Chicago	$0.05	N/A	N/A
Plant 1	St Louis	$0.05	$0.50	$0.35	500000
Plant 2	Detroit	$0.03	$0.45	$0.40	650000
Plant 3	Milwaukee	$0.04	$0.30	$0.26	400000

Answer 1