Managing Supply Chain and Operations 1st Edition by Thomas Foster ,Scott Sampson,Cynthia Wallin,Scott Webb

Exercise 24

A company produces a product at two manufacturing plants. The product is then shipped to warehouses in Fort Worth, Chicago, and Fresno. The cost of shipping from the plants to the warehouses is indicated in the follow-ing cost matrix. The amount that can be produced each week at the plants and the weekly demands at the ware-houses are also shown. Determine the shipping schedule that minimizes the total cost of delivering the product from the plants to the warehouses, ensuring that each warehouse receives its weekly demand and that each plant does not exceed its weekly production supply.
Shipping Cost per Unit Determine the optimal shipping plan for the company.