A company wants to minimize the cost of shipping a product from 3 different factories to 6
Question:
A company wants to minimize the cost of shipping a product from 3 different factories to 6 different customers. Each factory has a capacity of upto 50000 units each. Customers 1 to 6 need to be supplied 30000 units, 23000 units, 15000 units, 32000 units, 28000 units, and 16000 units, respectively. How should the company distribute the products? The shipping costs are given in the table below. Minimize the costs of shipping goods from factories to customers, while meeting the demand of each customer.
Cost of shipping ($ per unit of product)
Destinations Factory 1 Factory 2 Factory 3
Customer 1 $1.75 $1.90 $2.00
Customer 2 $2.25 $2.35 $2.50
Customer 3 $1.50 $2.00 $2.50
Customer 4 $2.00 $1.75 $1.50
Customer 5 $1.65 $1.80 $1.95
Customer 6 $1.50 $1.25 $1.00
Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds