Exhibit 8-1 Six Storage Bins on a Railroad Train Are Available for Available

Essay

Exhibit 8-1
Six storage bins on a railroad train are available for shipment of grain from Kansas City to Dallas. Three of the bins can hold 1500 bushels of grain each, while the other three can hold 750 bushels each. There are four types of grain that can be shipped, and the amount demanded, unit shortage cost and maximum allowable shortage for each are:
If the maximum allowable shortage is exceeded for any grain, a $100/bushel penalty is incurred.

-Refer to Exhibit 8-1.How should the train be loaded to minimize shortage and penalty costs