Question: Suppose there are 4 supply points and 10 demand points. The per unit cost to ship from supply point to demand point is in the

  1. Suppose there are 4 supply points and 10 demand points. The per unit cost to ship from supply point to demand point is in the matrix below:

From/To

DP1

DP2

DP3

DP4

DP5

DP6

DP7

DP8

DP9

DP10

Capacity

Plant A

60

70

55

80

90

50

75

90

110

60

300

Plant B

90

100

70

70

80

90

95

65

70

90

300

Plant C

70

80

80

90

60

60

70

95

95

100

300

Plant D

100

75

100

100

75

80

100

100

80

80

200

Demand

100

120

160

100

90

80

110

140

85

95

X

1) Which plant should serve which demand points?

2) What is the lowest cost?

3) How much is it worth to add capacity to Plant A?

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