A national catalog and Internet retailer has three warehouses and three major distribution centers located around the
Question:
A national catalog and Internet retailer has three warehouses and three major distribution centers located around the country. Normally, items are shipped directly from the warehouses to the distribution centers; however, each of the distribution centers can also be used as an intermediate transshipment point. The transportation costs ($/unit) between warehouses and distribution centers, the supply at the warehouses (100 units), and the demand at the distribution centers
(100 units) for a specific week are shown in the following table:
Distribution Center Warehouse A B C Supply 1 $12 $ 11 $ 7 70 2 8 6 14 80 3 9 10 12 50 Demand 60 100 40 The transportation costs ($/unit) between the distribution centers are
Determine the optimal shipments between warehouses and distribution centers to minimize total transportation costs.
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