Question: Problem 2 - Widgetco Widgetco manufactures widgets at two factories, one in Memphis and one in Denver. The Memphis factory can produce as 150 widgets,

Problem 2 - Widgetco

Widgetco manufactures widgets at two factories, one in Memphis and one in Denver. The Memphis factory can produce as 150 widgets, and the Denver factory can produce as many as 200 widgets per day. Widgets are shipped by air to customers in LA and Boston. The customers in each city require 130 widgets per day. Because of the deregulation of airfares, Widgetco believes that it may be cheaper first fly some widgets to NY or Chicago and then fly them to their final destinations. The cost of flying a widget are shown next. Widgetco wants to minimize the total cost of shipping the required widgets to customers.

Memphis

$18

$23

$30

$38

150

Denver

$25

$22

$36

$35

200

NY

$0

$16

$26

$27

350

Chicago

$16

$0

$24

$26

350

Demand

350

350

130

130

Supply: Memphis and Denver

Demand: LA and Boston

Distribution: NY and Chicago

Formulate and solve the LP to find the least-cost means of shipping supplies.

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