Question: Izzy Plastic Processing Company has three processing plants in three locations. It received orders from three customers. Plant 1 has 700 cartons, Plant 2 has
Izzy Plastic Processing Company has three processing plants in three locations. It received orders from three customers. Plant 1 has 700 cartons, Plant 2 has 500 cartons, and Plant 3 has 300. cartons. Customer A needs 400 cartons, customer B needs 500 cartons, and customer C needs 600 cartons. The costs of transportation per carton of the product from the plants to the customers are presented as follows:
Customer A Customer B Customer C
Plant 1 5.00 2.00 5.50
Plant 2 4.00 2.50 3.00
Plant 3 4.50 3.50 3.00
Required: Determine the distribution of the products to the three customers where the transportation costs are minimized using the stepping-stone and modified distribution (MODI) methods following the northwest corner rule for the initial solution.
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