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(15 pts) FiberTech makes newsprintfornewspapers at threemills, A,B, and C. The cost of producing newsprint is estimatedto be $210at mill A, $225 at B, and

(15 pts)FiberTech makes newsprintfornewspapers at threemills, A,B, and C. The cost of producing newsprint is estimatedto be $210at mill A, $225 at B, and $220 at C. Five primary geographical markets are served fromthese mills. The monthlydemand at each market,the shipping cost (perton)between eachmill and market, andthe monthly production capacity ofeach millare given inthe tablebelow. FiberTech would like to assign productionresponsibilities tothe mills, and also specify howmuch should be shipped fromeach plant to eachmarket, so astominimize total productionand distributioncosts.

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Market Capacity Mill 2 3 4 5 tons/month Shipping A $20 $25 $30 $15 $35 1200 Cost/Ton B $30 $20 $32 $28 $19 1500 C $25 $18 $28 $23 $31 900 Monthly 600 100 500 800 500 Demand (tons)

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