Demand-supply-transportation costs for the engines


Problem:

WPC has 4 assembly plants in Europe. They are located in Leipzig, Nancy, Liege & Tilburg. The engines used by these plants are produced in th United States, shipped to harbors in Amsterdam, Antwerp and Le Havre and are sent to the plants for assembly.

WPC must decide how many engines to send from each harbor to each plant. The engines are transported by common carrier, and charges are on a per engine basis.

The tables below give the Demand, Supply & transportation costs for the engines.

Provide your recommendations in a memo to the SPC's transportation director. Provide support documents from STORM (brainmass excel).

Demand for Diesel Engines
PLANT NO. ENGINES REQUIRED
Leipzig 400
Nancy 900
Liege 200
Tilburg 500

Supply of Diesel Engines
HARBOR NO. OF ENGINES Available
Amsterdam 500
Antwerp 700
Le Havre 800

Cost To Transport an Engine Harbor to plant
TO PLANT
FROM HARBOR Leipzig Nancy Liege Tilburg
Amsterdam 120 130 41 62
Antwerp 61 40 100 110
Le Harve 102.50 90 122 42

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Microeconomics: Demand-supply-transportation costs for the engines
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