Sinclair Plastics Operates Two Chemical Plants Which Produce Polyethylene; the Ohio

Essay

Sinclair Plastics operates two chemical plants which produce polyethylene; the Ohio Valley plant, which produces 5000 tons per month, and the Lakeview plant, which can produce 7000 tons per month. Sinclair sells its polyethylene to three different GM auto plants: Grand Rapids (demand = 3000 tons per month), Blue Ridge (demand = 5000 tons per month), and Sunset (demand = 4000 tons per month). The costs of shipping between the respective plants is shown in the table below:
-What is the optimal shipping plan? What are the total costs in that case?