Question: You Doll & Doll has two facilities that source, procure raw material, manufacture, QAQC and initial Pack for delivery. The company distributes the toys

You Doll & Doll has two facilities that source, procure raw material, manufacture, QAQC and initial Pack for delivery. The company distributes the toys from these two plants through two distribution centers (DCs) located at Wah & Jhelum, to three different customer regions namely, Islamabad, Rawalpindi, Lahore where the toys are packaged as per demand and sold. Each plant has a maximum capacity for its weekly supply of toys. Likewise, each region has a minimum weekly demand for toys. Furthermore, distributer has asked to sell toys at their facility calling it factory outlets, so they have demands as well. The cost to distribute a pallet of toys (100 toys per pallet) between each plant and region depends on the distances between them. The transportation costs, maximum supplies in the plants, and minimum demands in the regions are summarized in the following tables: Origin Plant Destination DC Transportation Cost (Rs/Pallet of toys) Plant 1 Wah Jhelum 5600 4100 Wah 5200 Plant 2 Jhelum 4200 Origin DC Destination Region Transportation Cost (Rs/pallets of toys) Wah Lahore Rawalpindi 7900 5200 Islamabad 4200 Lahore 4700 Jehlum Rawalpindi Islamabad Plant Plant 1 Plant 2 6500 6700 Maximum Supply (pallets of toys) 1300 1050 Region Minimum Demand (pallets of toys) Lahore 500 Rawalpindi 1000 Islamabad 350 Wah 100 Jhelum 150 In order to minimize total costs, Doll & Doll wishes to optimize the flow of toys from plants to DCs to regions to customers. 1. In the optimal solution, what is the minimum total cost of moving the toys from plant to DCs? 2. What is total transportation cost of moving the toys from DCs to regions? 3. What is total transportation cost of moving the toys from plant to regions?
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