A company manufactures a type of product in three differentproduction plants: P1, P2 and P3. Each of these production plantscan produce up to 1570 units per month. The company supplies fourcustomers who require each 1000, 1200, 1500 and 1000 units permonth. The company makes a gross profit of R110/unit (excludingtransport cost).The transportation rates (Rand/unit) from each production plant toeach customer are displayed below:ETTTICustomer 325Customer 1Customer 2Customer 4Plant 13010203015Plant 2152510Plant 3203020A stockout rate of R12/unit applies for the short supply of products tothe customers. Assist the company to find the shipment plan that willallow them to maximise profits.

Supply from Plant ( Units) Plant-1 1570 Plant-2 1570 Plant-3 1570 Demand from…

Answered: A stockout rate of R12/unit applies for…

A stockout rate of R12/unit applies for the short supply of products to the customers. Assist the company to find the shipment plan that will allow them to maximise profits.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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