Introduction to Management Science 12th Edition by Bernard Taylor

Exercise 17

In Problem, Computers Unlimited wants to better meet demand at the four universities it supplies. It is considering two alternatives: (1) expand its warehouse at Richmond to a capacity of 600, at a cost equivalent to an additional $6 in handling and shipping per unit; or (2) purchase a new warehouse in Charlotte that can supply 300 units with shipping costs of $19 to Tech, $26 to A M, $22 to State, and $16 to Central. Which alternative should management select, based solely on transportation costs (i.e., no capital costs)
Problem
Computers Unlimited sells microcomputers to universities and colleges on the East Coast and ships them from three distribution warehouses. The firm is able to supply the following numbers of microcomputers to the universities by the beginning of the academic year:
Four universities have ordered microcomputers that must be delivered and installed by the beginning of the academic year:
The shipping and installation costs per microcomputer from each distributor to each university are as follows:
Solve this problem by using the computer.