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Lion golf supplies operates three production plants in Sarasota, Florida, Louisville, Kentucky, and Carson, California. The plant in Sarasota can produce the high end “professional” line of golf clubs and the more moderate “deluxe” line. The plant in Louisville can produce the deluxe line and basic “weekender” line,while the one in carson can produce all three models.the amount of steel,aluminum and wood required to make a set of each line of clubs (including waste),the monthly availability of these resources at each o the three plants and the gross profit per set are given in the following.
Steel aluminum wood gross profit
Professional 3.2 lbs. 5.0 lbs 5.2 lbs $250
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Order Paper NowDeluxe 3.6 lbs 4.0 lbs 4.8 lbs $175
Weekender 2.8 lbs 4.5 lbs 4.4 lbs $200
Available monthly 5000 lbs 7000 lbs 10000 lbs
Sarasota
Available monthly 9000 lbs 13000 lbs 18000 lbs
Louisville
Available monthly 14000 lbs 18000 lbs 20000 lbs
Carson
Lion has three major distribution centers in Anaheim, California, Dallas, Texas and Toledo, Ohio. The projected monthly demand and unit transportation costs for each line between the manufacturing centers and distribution centers are given in the following table. Lion must ship between 80% and 100% of the demand for each line to each distribution center.
Professional sarasota Louisville carson total demand
Anaheim $45 $9 600
Dallas $32 $40 400
Toledo $30 $50 200
Deluxe sarasota Louisville carson total demand
Anaheim $40 $34 $6 800
Dallas $28 $18 $35 1000
Toledo $25 $10 $40 1100
Weekender sarasota Louisville carson total demand
Anaheim $30 $5 800
Dallas $15 $30 1500
Toledo $9 $36 1000
Determine an optimal production/shipping pattern for Lion Golf Supplies.
