Question: In Problem S11-1, what would be the effect of a reduction in production capacity at the Hamilton location from 310 tons to 260 tons per

In Problem S11-1, what would be the effect of a reduction in production capacity at the Hamilton location from 310 tons to 260 tons per week?


Problem S11-1

Steel mills in three cities produce the following amounts of steel:

Location                       Weekly Production (tons)

A. Richmond ...................................... 180

B. Longueuil ....................................... 260

C. Hamilton ........................................ 310

........................................................... 750

These mills supply steel to four cities, where manufacturing plants have the following demand:

Location                     Weekly Production (tons)

1. Toronto ....................................... 160

2. Vancouver .................................. 120

3. Montreal ..................................... 170

4. Halifax ........................................ 220

........................................................ 670

Shipping costs per ton of steel are as follows:

to From 3 $ 90 $140 A. $130 $170 110 B. 120 70 100 C. 180 130 100 210 2.


Because of a truckers€™ strike, shipments are prohibited from Richmond to Toronto. Solve this problem.

to From 3 $ 90 $140 A. $130 $170 110 B. 120 70 100 C. 180 130 100 210 2.

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