Your company builds computers at three locations (Plant 1-Plant 3) and ships it to five distributors...

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Your company builds computers at three locations (Plant 1-Plant 3) and ships it to five distributors (D1-D5). The cost per unit of building a computer and the production capacity for each plant are known. The number of units demanded by each customer is also known. The cost (in dollars) of shipping unit from a plant to each distributor is available as well. The following table provides the data: From P1 From P2 From P3 Demands D1 $15 $15 $25 37 D2 $23 $22 $15 37 D3 $15 $18 $19 50 D4 $23 $21 $18 35 D5 $15 $21 $20 45 Capacity 68 76 93 Cost $271 $264 $244 Your company wishes to minimize the cost of producing and shipping computers from its plants to its distributors. What is the minimum total cost? What will be the cost of production? What is the cost of shipping? Your company builds computers at three locations (Plant 1-Plant 3) and ships it to five distributors (D1-D5). The cost per unit of building a computer and the production capacity for each plant are known. The number of units demanded by each customer is also known. The cost (in dollars) of shipping unit from a plant to each distributor is available as well. The following table provides the data: From P1 From P2 From P3 Demands D1 $15 $15 $25 37 D2 $23 $22 $15 37 D3 $15 $18 $19 50 D4 $23 $21 $18 35 D5 $15 $21 $20 45 Capacity 68 76 93 Cost $271 $264 $244 Your company wishes to minimize the cost of producing and shipping computers from its plants to its distributors. What is the minimum total cost? What will be the cost of production? What is the cost of shipping?

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Solution To find the minimum total cost cost of production and cost of shipping you can set up a lin... View the full answer