Question:
Blue Mountain Coffee Company produces various blends of Free Trade, organic specialty coffees that it sells to wholesale customers. The company imports 25 million pounds of coffee beans annually from coffee plantations in Brazil, Indonesia, Kenya, Colombia, Côte dIvoire, and Guatemala. The beans are shipped from these countries to U.S. ports in Galveston, New Orleans, Savannah, and Jacksonville, where they are loaded onto container trucks and shipped to the companys plant in Vermont. The shipping costs (in dollars per million pounds) from the countries to the U.S. ports, the amount of beans (in millions of pounds) contracted from the growers in each country, and the port capacities are shown in the following table:
The shipping costs from each port to the plant in Vermont are shown in the following table:
U.S. Port ..... Vermont
7. Galveston .... $61,000
8. New Orleans .. 55,000
9. Savannah .... 38,000
10. Jacksonville .. 43,000
Determine the optimal shipments from the grower countries to the plant in Vermont that will minimize shippingcosts.
Transcribed Image Text:
U.S. Port Grower Country G New Orleans Savannah Jacksonville Supply 1. Brazil 2. Colombia 3. Indonesia 4. Kenya 5. Côte d' Ivoire 6. Guatemala $30,000 19,000 53,000 45,000 35,000 14,000 $29,000 28,000 45,000 48,000 27,000 24,000 8.1 6.6 3.2 $36,000 23,000 47,000 54,000 33,000 17,000 $41,000 35,000 39,000 41,000 29,000 28,000 1.7 3.6 Capacity 7.8 6.7