Problem on shipping a single product from two of its plants


Problem: A manufacturer is planning to produce and then ship a single product from two of its plants to satisfy demand at a single distant customer. The company contracts the actual transportation of the product out to a third-party shipping company, who offers bulk discounts depending on which plant the product is shipped from. • If shipping from Plant 1 to the customer, then the prices are as follows: $7 per unit for the first 1000 units, $5 per unit for the next 1000 units, and $2 per unit for all units above 2000.

 

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Other Management: Problem on shipping a single product from two of its plants
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