Ethan Steel, Inc ​
Shipping Details (With Per-Unit Shipping Cost)

Essay

Ethan Steel, Inc. has two factories that manufacture steel components for four different rail projects. The demand for the steel components for the four projects, Project A, Project B, Project C, and Project D, are 3220, 3675, 4125, and 2975, respectively. The shipping details are as below.
Production Details: $$\begin{array} { l c } \text { Factory } & \begin{array} { c } \text { Maximum } \\\text { Capacity }\end{array} \\\hline 1 & 6500 \\2 & 8500\end{array}$$ ​
Shipping Details (with per-unit shipping cost): $$\begin{array} { l c c c c } & { \text { Project } } \\\hline \text { Factory } & \text { A } & \text { B } & \text { C } & \text { D } \\\hline 1 & \$ 7 & \$ 7 & \$ 8 & \$ 4 \\2 & \$ 6 & \$ 5 & \$ 7 & \$ 3\end{array}$$ What is the optimal (cost minimizing) distribution plan for this transportation problem?