Fork Motor Company is an automobile manufacturer operating in the United States.

It has divided its market into three regions and has built three regional distribution centers (RDCs) to serve these markets. RDCs are located in California, Florida, and Texas.

The annual demand at each regional distribution center is estimated as follows, and the company wants to satisfy all the demand.

- DRC – California: 1.5 million cars (ie 1.5 million)

- DRC – Florida: 0.5M cars

- DRC – Texas: 1M cars

Fork Motor has two plants in Michigan and Nevada and wants to distribute the cars to the RDCs at the lowest cost. Therefore, they must decide how many cars to ship from each of the plants to each of the RDCs to achieve a minimum cost. You are asked to model and solve this assignment problem.

Below is the shipping distance between Fork Motor facilities in miles.

	Plant – Michigan	Plant – Snowfall
RDC-California	2000	300
DRC-Florida	1000	1300
DRC-Texas	1200	800

The head of the supply chain informs you that you must consider the capacity limits of the plants. The Michigan plant is much larger than the one in Nevada. He adds that the capacity limits are as follows:

- Plant – Michigan: 2.5M

- Planta – Nevada: 0.7M

The company estimates that each car will cost $8.53 per mile to transport.

What is the minimum cost of shipping cars to the DRCs in millions of dollars?

Answer rating: 100% (QA)

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