1) Transportation costs for Legos are give in the following chart (see right):

Distribution centers are across the top row; plants creating legos are in the left column
(a) How should the legos be shipped to satisfy demand and minimize cost? Provide detailed solution with analysis.
(b) Suppose that you consider building a new source to satisfy demand. Choose a location and assign values for shipping to the 4 destinations. Assuming the production levels of this new facility put supply equal to demand in the table above, how should the legos be shipped to minimize costs? Comment on the change in shipping plans from what you found previously.

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Washington New York Ohio $12.00 MichiganSUPPLY $11.50 20000 25000 California $5.00 $15.000 Texas $6.00 $8.00 $12.00 $7.00 Florida S17.00 $7.00 S7.00 $9.00 15000 12500 Minnesota $4.00 $5.00 $12.00 $12.000 DEMAND 30000 30000 10000 10000