A company sells four types of gift packages. The cost per unit and demand for each package type is shown in the table below. A fixed cost of $1,000 is also incurred for each different type of gift package produced (so up to $4,000 in fixed costs possible). More expensive package types may be used to satisfy demand for less expensive types, however, so it is not necessary to produce all four types. Formulate a shortest-path minimize the total cost of problem to meeting all demand. Make sure to clearly explain what the different nodes and arrows represent. Draw the network only (no tableau necessary here)

 

Package Type Cost ($/unit) C 26 D 24 700 A 33 30 300 500 Demand 400