Question: Widgetco Transshipment Assignment Widgetco manufactures widgets at two factories, one in Memphis and one in Denver. The Memphis factory can produce up to 150 Widgets

Widgetco Transshipment Assignment Widgetco

Widgetco Transshipment Assignment Widgetco manufactures widgets at two factories, one in Memphis and one in Denver. The Memphis factory can produce up to 150 Widgets per day, and the Denver factory can produce up to 200 widgets per day. Widgets are shipped by air to customers in Los Angeles and Boston. The customers in each city require 130 widgets per day. Because of deregulation of airfares, Widgetco believes that it may be cheaper to first fly some widgets to New York or Chicago and then fly the widgets to their final destinations making New York and Chicago transshipment points. The cost of flying a widget is given in the table below. Widgetco wants to minimize the total cost of shipping the required widgets to its customers. A dashed line in the cost table, ---, denotes an impossible shipment path. For example, it is not possible to ship from Memphis to Denver. Denver Chicago LA Memphis $0 $13 $25 $0 From Memphis Denver NY Chicago LA NY $8 $15 $0 $6 $12 $6 $0 $26 $16 $14 $0 Boston $28 $25 $17 $16 Boston $0

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